In This Article:
As trade tensions ease and central banks maintain a cautious stance on interest rates, the Canadian market is navigating a period of potential economic stabilization. In this environment, identifying stocks that may be trading below their estimated worth could offer investors opportunities for value investing.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| K92 Mining (TSX:KNT) | CA$12.65 | CA$23.80 | 46.8% |
| Docebo (TSX:DCBO) | CA$36.20 | CA$58.03 | 37.6% |
| Badger Infrastructure Solutions (TSX:BDGI) | CA$43.70 | CA$77.07 | 43.3% |
| Groupe Dynamite (TSX:GRGD) | CA$14.98 | CA$28.25 | 47% |
| Aris Mining (TSX:ARIS) | CA$7.84 | CA$13.12 | 40.2% |
| VersaBank (TSX:VBNK) | CA$15.79 | CA$30.62 | 48.4% |
| Lithium Royalty (TSX:LIRC) | CA$5.10 | CA$8.55 | 40.3% |
| Tidewater Midstream and Infrastructure (TSX:TWM) | CA$0.205 | CA$0.38 | 45.8% |
| AtkinsRéalis Group (TSX:ATRL) | CA$74.40 | CA$114.93 | 35.3% |
| Journey Energy (TSX:JOY) | CA$1.62 | CA$3.17 | 48.9% |
Let's take a closer look at a couple of our picks from the screened companies.
Celestica
Overview: Celestica Inc., along with its subsidiaries, offers supply chain solutions across North America, Europe, and Asia with a market cap of CA$14.91 billion.
Operations: The company's revenue segments include Advanced Technology Solutions (ATS) generating $3.19 billion and Connectivity & Cloud Solutions (CCS) contributing $6.89 billion.
Estimated Discount To Fair Value: 21.9%
Celestica is trading at CA$140.33, which is 21.9% below its estimated fair value of CA$179.67, indicating it may be undervalued based on cash flows. Earnings are expected to grow significantly at 23.47% annually over the next three years, outpacing the Canadian market's growth rate of 13.7%. Despite a slight decline in net income for Q1 2025 compared to last year, revenue rose to US$2.65 billion from US$2.21 billion previously reported.
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According our earnings growth report, there's an indication that Celestica might be ready to expand.
Energy Fuels
Overview: Energy Fuels Inc. is involved in the exploration, recovery, recycling, operation, development, permitting, evaluation, and sale of uranium mineral properties in the United States with a market cap of CA$1.44 billion.
Operations: Energy Fuels Inc. generates revenue through activities related to the exploration, recovery, recycling, operation, development, permitting, evaluation, and sale of uranium mineral properties in the United States.