TSX Value Stocks Trading Below Estimated Intrinsic Worth In May 2025
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As Canadian investors navigate a landscape marked by potential changes in U.S. tax policy and rising bond yields, the focus on value investing becomes increasingly pertinent. In this environment, identifying stocks trading below their intrinsic worth can offer opportunities for those seeking to optimize their portfolios amidst evolving economic conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Whitecap Resources (TSX:WCP) | CA$8.73 | CA$14.06 | 37.9% |
| Docebo (TSX:DCBO) | CA$36.04 | CA$58.01 | 37.9% |
| Groupe Dynamite (TSX:GRGD) | CA$15.20 | CA$27.75 | 45.2% |
| Aris Mining (TSX:ARIS) | CA$8.74 | CA$13.08 | 33.2% |
| VersaBank (TSX:VBNK) | CA$16.00 | CA$29.98 | 46.6% |
| Lithium Royalty (TSX:LIRC) | CA$5.50 | CA$8.45 | 34.9% |
| TerraVest Industries (TSX:TVK) | CA$161.99 | CA$297.31 | 45.5% |
| Timbercreek Financial (TSX:TF) | CA$7.28 | CA$10.82 | 32.7% |
| Journey Energy (TSX:JOY) | CA$1.59 | CA$2.84 | 44% |
| Laurentian Bank of Canada (TSX:LB) | CA$28.17 | CA$41.40 | 32% |
Let's dive into some prime choices out of the screener.
NanoXplore
Overview: NanoXplore Inc. is a graphene company that manufactures and supplies graphene powder for industrial markets in Australia, with a market cap of CA$394.11 million.
Operations: The company's revenue is derived from two main segments: Battery Cells and Materials, contributing CA$0.57 million, and Advanced Materials, Plastics and Composite Products, generating CA$134.79 million.
Estimated Discount To Fair Value: 10.5%
NanoXplore is trading at CA$2.31, below its estimated fair value of CA$2.58, suggesting it may be undervalued based on cash flows. Despite a decline in recent quarterly sales to CA$29.24 million from CA$33.62 million last year, the company has improved its net loss position and forecasts revenue growth of 21.4% annually, outpacing the Canadian market average of 3.4%. A share buyback program further signals management's confidence in future prospects.
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The analysis detailed in our NanoXplore growth report hints at robust future financial performance.
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Delve into the full analysis health report here for a deeper understanding of NanoXplore.
Timbercreek Financial
Overview: Timbercreek Financial Corp. offers shorter-duration structured financing solutions to commercial real estate investors in Canada, with a market cap of CA$602.44 million.
Operations: The company's revenue segment primarily consists of financial services through mortgage solutions, generating CA$72.43 million.
Estimated Discount To Fair Value: 32.7%
Timbercreek Financial, trading at CA$7.28, is undervalued with a fair value estimate of CA$10.82. Earnings are projected to grow 12.7% annually, surpassing the Canadian market's 11.6%. However, recent quarterly sales declined to CA$3.16 million from CA$4.35 million last year, though net income slightly rose to CA$14.77 million from CA$14.37 million a year ago, highlighting potential cash flow concerns despite future growth prospects and consistent dividend declarations of CAD 0.0575 per share monthly.