3 TSX Stocks That Could Be Undervalued By Up To 36.7%
As the Canadian market experiences solid earnings growth with 64% of S&P/TSX companies surpassing estimates, investors are keenly observing how inflation pressures and potential Fed rate hikes might influence future economic conditions. In this environment, identifying undervalued stocks becomes crucial for those looking to capitalize on potential price corrections and long-term value, especially as broader participation in earnings growth suggests a more stable market outlook.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Medexus Pharmaceuticals (TSX:MDP) | CA$5.02 | CA$9.15 | 45.1% |
| i-80 Gold (TSX:IAU) | CA$1.82 | CA$2.87 | 36.7% |
| G Mining Ventures (TSX:GMIN) | CA$42.73 | CA$66.97 | 36.2% |
| Gildan Activewear (TSX:GIL) | CA$77.60 | CA$143.35 | 45.9% |
| Evolve Royalties (CNSX:EVR) | CA$2.88 | CA$4.44 | 35.1% |
| Energy Fuels (TSX:EFR) | CA$16.06 | CA$29.05 | 44.7% |
| Chemtrade Logistics Income Fund (TSX:CHE.UN) | CA$16.36 | CA$30.43 | 46.2% |
| Celestica (TSX:CLS) | CA$463.87 | CA$734.66 | 36.9% |
| Avino Silver & Gold Mines (TSX:ASM) | CA$7.42 | CA$13.09 | 43.3% |
| Aritzia (TSX:ATZ) | CA$139.68 | CA$253.73 | 44.9% |
We'll examine a selection from our screener results.
Colliers International Group (TSX:CIGI)
Overview: Colliers International Group Inc. is a global provider of commercial real estate, engineering, and investment management solutions, with operations in regions including the United States, Canada, Europe, Australia, the United Kingdom, Poland, China, and India; it has a market cap of approximately CA$7.10 billion.
Operations: Colliers generates revenue through its commercial real estate services, engineering solutions, and investment management operations across various international markets.
Estimated Discount To Fair Value: 17.8%
Colliers International Group is trading at CA$137.84, which is 17.8% below its estimated future cash flow value of CA$167.78, indicating potential undervaluation based on cash flows. Despite slower revenue growth forecasts of 8.4% annually, earnings are expected to grow significantly at 43% per year, outpacing the Canadian market's average growth rate. Recent earnings report shows improved net income and sales figures, while a share repurchase program could enhance shareholder value further.
- The analysis detailed in our Colliers International Group growth report hints at robust future financial performance.
- Dive into the specifics of Colliers International Group here with our thorough financial health report.
i-80 Gold (TSX:IAU)
Overview: i-80 Gold Corp. is a mining company focused on exploring and advancing gold and silver mineral deposits in the United States, with a market cap of CA$1.62 billion.
Operations: The company's revenue segments include Lone Tree generating $17.35 million, Ruby Hill contributing $7.46 million, and Granite Creek providing $108.72 million.
Estimated Discount To Fair Value: 36.7%
I-80 Gold is trading at CA$1.82, significantly below its estimated cash flow value of CA$2.87, suggesting undervaluation based on cash flows. Revenue growth is projected at 44% annually, surpassing the Canadian market's average. The Lone Tree Plant refurbishment in Nevada aims to cut processing costs and boost margins by up to US$1,500 per ounce of gold. Terminating a costly gold offtake agreement further enhances future cash flows through 2028.
- Insights from our recent growth report point to a promising forecast for i-80 Gold's business outlook.
- Navigate through the intricacies of i-80 Gold with our comprehensive financial health report here.
Kraken Robotics (TSXV:PNG)
Overview: Kraken Robotics Inc. is a marine technology company that designs, manufactures, and sells sonar and optical sensors, batteries, and underwater robotic equipment for military and commercial applications, with a market cap of CA$1.78 billion.
Operations: The company's revenue is generated from two main segments: Products, contributing CA$66.34 million, and Services, adding CA$41.44 million.
Estimated Discount To Fair Value: 34.9%
Kraken Robotics, trading at CA$5.81, is undervalued compared to its estimated cash flow value of CA$8.93. The company has announced CAD 327 million in product orders for 2026, driven by demand for its sonar and battery technologies across defense and offshore energy sectors. Despite recent insider selling, Kraken's revenue is forecast to grow by 55.3% annually, significantly outpacing the Canadian market average of 4.4%.
- Our comprehensive growth report raises the possibility that Kraken Robotics is poised for substantial financial growth.
- Get an in-depth perspective on Kraken Robotics' balance sheet by reading our health report here.
Turning Ideas Into Actions
- Gain an insight into the universe of 24 Undervalued TSX Stocks Based On Cash Flows by clicking here.
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Want To Explore Some Alternatives?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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