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Capstone Mining and Enbridge Income Fund Holdings are stocks on my list that are potentially undervalued. This means their current share prices are trading well-below what the companies are actually worth. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.
Capstone Mining Corp. (TSX:CS)
Capstone Mining Corp. engages in the exploration and production of base metals in the United States, Mexico, and Canada. The company size now stands at 1209 people and with the company’s market cap sitting at CAD CA$462.73M, it falls under the small-cap group.
CS’s stock is now floating at around -22% lower than its true value of $1.45, at the market price of CA$1.13, according to my discounted cash flow model. This mismatch indicates a chance to invest in CS at a discounted price. What’s even more appeal is that CS’s PE ratio is trading at around 4.26x against its its Metals and Mining peer level of, 9.48x meaning that relative to its peers, we can buy CS’s stock at a cheaper price today. CS is also strong financially, as current assets can cover liabilities in the near term and over the long run.
Dig deeper into Capstone Mining here.
Enbridge Income Fund Holdings Inc. (TSX:ENF)
Enbridge Income Fund Holdings Inc., through its investment in Enbridge Income Fund, holds energy infrastructure assets in Canada. The company was established in 2010 and has a market cap of CAD CA$4.81B, putting it in the mid-cap stocks category.
ENF’s stock is currently floating at around -84% beneath its intrinsic level of $166.9, at a price of CA$27.42, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Additionally, ENF’s PE ratio stands at 12.68x compared to its Oil and Gas peer level of, 15.49x suggesting that relative to its comparable company group, we can buy ENF’s stock at a cheaper price today. ENF is also robust in terms of financial health, with short-term assets covering liabilities in the near future as well as in the long run. ENF also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on Enbridge Income Fund Holdings here.
STEP Energy Services Ltd. (TSX:STEP)
STEP Energy Services Ltd. operates as an oilfield service company that provides fracturing and coiled tubing solutions in Canada and the United States. Started in 2011, and currently headed by CEO Regan Davis, the company currently employs 1,122 people and with the stock’s market cap sitting at CAD CA$754.62M, it comes under the small-cap category.