In This Article:
As markets continue to ride a wave of optimism fueled by recent rate cuts and enthusiasm around AI, the TSX has reached all-time highs, reflecting a broader trend of economic expansion and rising corporate earnings. In this environment, identifying promising small-cap stocks in Canada can be particularly rewarding, as these companies often thrive under conditions of easing monetary policy and robust market fundamentals.
Top 10 Undiscovered Gems With Strong Fundamentals In Canada
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| TWC Enterprises | 6.74% | 10.99% | 25.68% | ★★★★★★ |
| Mandalay Resources | 11.86% | 9.48% | 37.58% | ★★★★★★ |
| Reconnaissance Energy Africa | NA | 15.28% | 7.58% | ★★★★★★ |
| Taiga Building Products | NA | 6.05% | 10.50% | ★★★★★★ |
| Tornado Global Hydrovacs | 14.62% | 24.52% | 64.90% | ★★★★★☆ |
| Grown Rogue International | 24.92% | 43.35% | 67.95% | ★★★★★☆ |
| Mako Mining | 22.90% | 38.12% | 54.79% | ★★★★★☆ |
| Queen's Road Capital Investment | 7.20% | 22.14% | 22.20% | ★★★★☆☆ |
| Genesis Land Development | 53.32% | 25.58% | 47.05% | ★★★★☆☆ |
| Dundee | 5.93% | -38.65% | 39.44% | ★★★★☆☆ |
Let's uncover some gems from our specialized screener.
Freehold Royalties
Simply Wall St Value Rating: ★★★★☆☆
Overview: Freehold Royalties Ltd. focuses on acquiring and managing royalty interests in crude oil, natural gas, natural gas liquids, and potash properties across Western Canada and the United States, with a market cap of CA$2.14 billion.
Operations: Freehold Royalties Ltd. generates revenue primarily from its oil and gas exploration and production segment, amounting to CA$323.04 million. The company's market cap is approximately CA$2.14 billion, reflecting its valuation in the industry.
Trading at a significant discount to its estimated fair value, Freehold Royalties stands out with high-quality earnings and a satisfactory net debt to equity ratio of 24.6%. Despite recent negative earnings growth of -5.9%, the company's interest payments are well covered by EBIT at 15.3 times, indicating financial stability. Recent performance shows net income for Q2 2024 at C$39.3 million, up from C$24.26 million last year, reflecting improved profitability amidst industry challenges.
Headwater Exploration
Simply Wall St Value Rating: ★★★★★★
Overview: Headwater Exploration Inc. is a Canadian company focused on the exploration, development, and production of petroleum and natural gas, with a market cap of CA$1.54 billion.