In This Article:
The Canadian market has been flat over the last week but is up 21% over the past year, with earnings expected to grow by 15% per annum. In this promising environment, identifying undervalued stocks with strong growth potential can offer significant opportunities for investors.
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% | ★★★★★★ |
| Westshore Terminals Investment | NA | -2.67% | -9.77% | ★★★★★☆ |
| 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 explore several standout options from the results in the screener.
Queen's Road Capital Investment
Simply Wall St Value Rating: ★★★★☆☆
Overview: Queen's Road Capital Investment Ltd. is a resource-focused investment company that invests in privately held and publicly traded resource companies, with a market cap of CA$357.88 million.
Operations: Queen's Road Capital Investment Ltd. generates revenue primarily from the selection, acquisition, and management of investments, amounting to CA$115.10 million. The company's market cap stands at CA$357.88 million.
Queen's Road Capital Investment has shown impressive financial health, with net income of US$78.05 million for the nine months ended May 31, 2024, compared to a net loss of US$27.64 million a year ago. The company repurchased 1,261,288 shares for CAD0.75 million under its recent buyback program and trades at 9.3% below estimated fair value. With an EBIT coverage of interest payments at 94x and a satisfactory net debt to equity ratio of 5.1%, QRC presents robust financial metrics in the Metals and Mining sector.
Silvercorp Metals
Simply Wall St Value Rating: ★★★★★★
Overview: Silvercorp Metals Inc., along with its subsidiaries, focuses on acquiring, exploring, developing, and mining mineral properties and has a market cap of CA$1.36 billion.
Operations: Silvercorp Metals generates revenue primarily from its mining operations in Guangdong ($27.35 million) and Henan Luoning ($200 million). The company's net profit margin is a key financial metric to consider.