In This Article:
As trade tensions ease with new agreements and the Bank of Canada maintains a neutral monetary policy, the Canadian market is experiencing a period of cautious optimism. In this environment, identifying stocks that are trading below their intrinsic value can be an advantageous strategy for investors looking to capitalize on potential market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
Name | Current Price | Fair Value (Est) | Discount (Est) |
K92 Mining (TSX:KNT) | CA$13.33 | CA$23.69 | 43.7% |
Docebo (TSX:DCBO) | CA$36.94 | CA$61.80 | 40.2% |
Badger Infrastructure Solutions (TSX:BDGI) | CA$42.60 | CA$76.80 | 44.5% |
Enterprise Group (TSX:E) | CA$1.71 | CA$3.08 | 44.5% |
VersaBank (TSX:VBNK) | CA$15.47 | CA$30.62 | 49.5% |
Lithium Royalty (TSX:LIRC) | CA$5.43 | CA$8.51 | 36.2% |
Tantalus Systems Holding (TSX:GRID) | CA$2.45 | CA$4.74 | 48.3% |
Kits Eyecare (TSX:KITS) | CA$11.60 | CA$22.45 | 48.3% |
Tidewater Midstream and Infrastructure (TSX:TWM) | CA$0.215 | CA$0.38 | 43.2% |
CAE (TSX:CAE) | CA$36.09 | CA$57.11 | 36.8% |
Here's a peek at a few of the choices from the screener.
Aris Mining
Overview: Aris Mining Corporation, with a market cap of CA$1.46 billion, is involved in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana.
Operations: Aris Mining Corporation generates its revenue through the acquisition, exploration, development, and operation of gold properties located in Canada, Colombia, and Guyana.
Estimated Discount To Fair Value: 26.5%
Aris Mining's recent financial performance highlights its potential as an undervalued stock based on cash flows. The company reported Q1 2025 sales of US$157.53 million, a significant increase from the previous year, with net income rising to US$2.37 million from a loss previously. Despite shareholder dilution, Aris is trading at CA$8.45, below the estimated fair value of CA$11.5, and forecasts suggest robust earnings growth significantly outpacing the Canadian market average over the next three years.
-
The analysis detailed in our Aris Mining growth report hints at robust future financial performance.
Kinaxis
Overview: Kinaxis Inc. offers cloud-based subscription software for supply chain operations across the United States, Europe, Asia, and Canada, with a market cap of CA$5.44 billion.
Operations: The company generates revenue from its software and programming segment, amounting to $496.53 million.
Estimated Discount To Fair Value: 25%