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As Canada navigates the implications of new U.S. policies on energy, tariffs, and economic growth under President Trump's administration, the TSX index has shown resilience with a notable rise since Inauguration Day. Amidst this backdrop of market volatility and potential policy shifts, investors may find opportunities in small-cap stocks that demonstrate strong fundamentals and adaptability to changing economic landscapes.
Top 10 Undiscovered Gems With Strong Fundamentals In Canada
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| TWC Enterprises | 6.24% | 12.63% | 23.89% | ★★★★★★ |
| Reconnaissance Energy Africa | NA | 9.16% | 15.11% | ★★★★★★ |
| Minsud Resources | NA | nan | -29.01% | ★★★★★★ |
| Lithium Chile | NA | nan | 42.01% | ★★★★★★ |
| Maxim Power | 25.01% | 12.79% | 17.14% | ★★★★★☆ |
| Mako Mining | 10.21% | 38.44% | 58.78% | ★★★★★☆ |
| Grown Rogue International | 24.92% | 19.37% | 188.55% | ★★★★★☆ |
| Corby Spirit and Wine | 65.79% | 7.46% | -5.76% | ★★★★☆☆ |
| Petrus Resources | 19.44% | 17.20% | 46.03% | ★★★★☆☆ |
| Dundee | 3.76% | -37.57% | 44.64% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Corby Spirit and Wine
Simply Wall St Value Rating: ★★★★☆☆
Overview: Corby Spirit and Wine Limited, with a market cap of CA$361.37 million, operates by manufacturing, marketing, and importing spirits, wines, and ready-to-drink cocktails across Canada, the United States, the United Kingdom, and international markets.
Operations: Corby Spirit and Wine generates revenue primarily from Case Goods, accounting for CA$204.08 million, followed by Commissions at CA$27.71 million. The company also earns from Other Services amounting to CA$4.34 million.
Corby Spirit and Wine, a Canadian beverage player, has shown robust earnings growth of 18.7% over the past year, outpacing the industry average of 13.2%. Despite this positive momentum, the company's net debt to equity ratio stands at a high 59.1%, up from 0% five years ago, indicating increased leverage. On a brighter note, Corby's interest payments are well covered by EBIT at 7.1 times coverage. Recent financials reveal sales of CAD 65 million for Q1 FY2024 and net income of CAD 9.3 million compared to CAD 7.52 million last year, reflecting solid operational performance amidst financial challenges.
Evertz Technologies
Simply Wall St Value Rating: ★★★★★★
Overview: Evertz Technologies Limited designs, manufactures, and distributes video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets globally with a market cap of approximately CA$1.02 billion.