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As the Canadian market navigates through a period of economic uncertainty influenced by U.S. tariffs and potential inflationary pressures, investors are closely monitoring how these factors might impact growth and monetary policy. In this environment, identifying undervalued stocks on the TSX can be an effective strategy for those looking to capitalize on potential opportunities, as these investments may offer value amidst fluctuating market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
Name | Current Price | Fair Value (Est) | Discount (Est) |
Propel Holdings (TSX:PRL) | CA$24.49 | CA$46.94 | 47.8% |
Computer Modelling Group (TSX:CMG) | CA$7.39 | CA$11.07 | 33.3% |
Savaria (TSX:SIS) | CA$16.49 | CA$31.14 | 47.1% |
K92 Mining (TSX:KNT) | CA$11.88 | CA$17.99 | 33.9% |
Docebo (TSX:DCBO) | CA$42.90 | CA$81.64 | 47.5% |
Lithium Royalty (TSX:LIRC) | CA$4.80 | CA$9.39 | 48.9% |
Thunderbird Entertainment Group (TSXV:TBRD) | CA$1.60 | CA$3.11 | 48.6% |
illumin Holdings (TSX:ILLM) | CA$2.00 | CA$3.68 | 45.6% |
AtkinsRéalis Group (TSX:ATRL) | CA$67.97 | CA$121.91 | 44.2% |
CAE (TSX:CAE) | CA$32.73 | CA$50.28 | 34.9% |
Here's a peek at a few of the choices from the screener.
Altus Group
Overview: Altus Group Limited offers asset and funds intelligence solutions for commercial real estate across various regions including Canada, the United States, and Europe, with a market cap of CA$2.18 billion.
Operations: The company's revenue is primarily derived from its Analytics segment, which generated CA$411.28 million, and its Appraisals and Development Advisory segment, contributing CA$109.21 million.
Estimated Discount To Fair Value: 20.4%
Altus Group appears undervalued based on cash flows, trading at CA$49.1 below its estimated fair value of CA$61.68. Recent earnings show improved net income of CA$13.42 million, up from CA$10.23 million, despite flat revenue growth expectations for Q1 2025 and modest annual growth forecasts of 3-5%. The company has repurchased shares worth CA$17.33 million, potentially enhancing shareholder value while maintaining a steady dividend payout of $0.15 per share for Q1 2025.
Propel Holdings
Overview: Propel Holdings Inc., along with its subsidiaries, functions as a financial technology company with a market cap of CA$854 million.
Operations: The company generates revenue of $449.73 million by offering lending-related services to borrowers, banks, and other institutions.