As the Canadian market navigates a complex landscape of fluctuating fuel prices and steady interest rates, investors are keenly watching for signs of economic resilience amid global uncertainties. In this environment, identifying undervalued stocks can be particularly rewarding, as these investments may offer potential value gains when market conditions stabilize.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|---|---|---|---|
| Vitalhub (TSX:VHI) |
CA$8.08 |
CA$15.55 |
48% |
| Montage Gold (TSX:MAU) |
CA$13.71 |
CA$25.75 |
46.8% |
| goeasy (TSX:GSY) |
CA$31.69 |
CA$61.93 |
48.8% |
| G Mining Ventures (TSX:GMIN) |
CA$48.88 |
CA$94.50 |
48.3% |
| Ero Copper (TSX:ERO) |
CA$36.07 |
CA$66.01 |
45.4% |
| Equinox Gold (TSX:EQX) |
CA$18.95 |
CA$37.41 |
49.4% |
| Endeavour Mining (TSX:EDV) |
CA$78.50 |
CA$145.20 |
45.9% |
| Eldorado Gold (TSX:ELD) |
CA$41.97 |
CA$79.70 |
47.3% |
| Americas Gold and Silver (TSX:USA) |
CA$7.75 |
CA$15.15 |
48.8% |
| Altus Group (TSX:AIF) |
CA$46.68 |
CA$91.65 |
49.1% |
We're going to check out a few of the best picks from our screener tool.
Aecon Group
Overview:Aecon Group Inc. is a company that, along with its subsidiaries, offers construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally, with a market cap of CA$3.36 billion.
Operations:Aecon Group's revenue is primarily derived from its Construction segment, which accounts for CA$5.42 billion, complemented by its Concessions segment contributing CA$7.55 million.
Estimated Discount To Fair Value:24.8%
Aecon Group's recent earnings report shows a narrowing net loss, with sales increasing to C$1.26 billion in Q1 2026 from C$1.06 billion a year ago. The company is trading at approximately 24.8% below its estimated future cash flow value of C$63.96, indicating it may be undervalued based on cash flows. Despite low forecasted return on equity, Aecon's earnings are expected to grow significantly over the next three years, supported by strategic contracts and a robust project pipeline.
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The growth report we've compiled suggests that Aecon Group's future prospects could be on the up.
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Click here to discover the nuances of Aecon Group with our detailed financial health report.
Savaria
Overview:Savaria Corporation offers accessibility solutions for the elderly and physically challenged across Canada, the United States, Europe, and internationally, with a market cap of CA$2.15 billion.
Operations:The company's revenue is derived from two main segments: Patient Care, contributing CA$203.19 million, and Accessibility (including Adapted Vehicles), which accounts for CA$710.34 million.
Estimated Discount To Fair Value:32.2%
Savaria Corporation is trading 32.2% below its estimated future cash flow value of CA$44.37, suggesting it might be undervalued based on cash flows. The company's earnings are projected to grow significantly at 23.2% annually, outpacing the Canadian market's growth rate of 10.6%. Recent results show a net income increase to CA$68.77 million from CA$48.51 million last year, while maintaining a reliable monthly dividend policy with consistent payouts.
TFI International
Overview:TFI International Inc. operates as a provider of transportation and logistics services across the United States, Canada, and Mexico, with a market cap of CA$15.49 billion.
Operations:TFI International Inc.'s revenue segments include Package and Courier with $1.54 billion, Less-Than-Truckload at $2.46 billion, Truckload generating $4.02 billion, and Logistics contributing $1.97 billion.
Estimated Discount To Fair Value:32.8%
TFI International is trading at CA$197.81, 32.8% below its estimated cash flow value of CA$294.33, reflecting potential undervaluation based on cash flows. Earnings are forecast to grow significantly at 27.7% annually, surpassing the Canadian market's growth rate of 10.6%. Despite a slight decline in quarterly revenue and net income compared to last year, TFI maintains a strong financial position with substantial free cash flow and ongoing acquisition opportunities.
Taking Advantage
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Unlock more gems! Our Undervalued TSX Stocks Based On Cash Flows screener has unearthed 27 more companies for you to explore.Click here to unveil our expertly curated list of 30 Undervalued TSX Stocks Based On Cash Flows .
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Ready For A Different Approach?
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Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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.
Companies discussed in this article include TSX:ARE TSX:SIS and TSX:TFII.
This article was originally published by Simply Wall St .
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