3 TSX Stocks That Could Be Undervalued Based On Current Estimates
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In the last week, the Canadian market has been flat, but it is up 13% over the past year with earnings expected to grow by 15% per annum. In this context, identifying undervalued stocks that have strong growth potential can be a strategic move for investors looking to capitalize on current market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| goeasy (TSX:GSY) | CA$184.27 | CA$359.78 | 48.8% |
| Computer Modelling Group (TSX:CMG) | CA$12.13 | CA$22.28 | 45.6% |
| Alvopetro Energy (TSXV:ALV) | CA$5.08 | CA$9.07 | 44% |
| Calian Group (TSX:CGY) | CA$44.36 | CA$72.65 | 38.9% |
| Africa Oil (TSX:AOI) | CA$1.91 | CA$3.70 | 48.4% |
| Kinaxis (TSX:KXS) | CA$147.96 | CA$280.68 | 47.3% |
| Viemed Healthcare (TSX:VMD) | CA$10.45 | CA$20.08 | 48% |
| Triple Flag Precious Metals (TSX:TFPM) | CA$21.40 | CA$33.37 | 35.9% |
| NanoXplore (TSX:GRA) | CA$2.31 | CA$4.20 | 45% |
| Opsens (TSX:OPS) | CA$2.90 | CA$4.64 | 37.5% |
Underneath we present a selection of stocks filtered out by our screen.
Docebo
Overview: Docebo Inc. is a learning management software company that offers an AI-powered learning platform across North America and internationally, with a market cap of CA$1.75 billion.
Operations: The company's revenue segment is primarily derived from its educational software, generating $200.24 million.
Estimated Discount To Fair Value: 22.4%
Docebo Inc. is trading 22.4% below its estimated fair value, with a current price of CA$57.48 compared to a fair value of CA$74.09. Recent earnings show significant improvement, with Q2 sales at US$53.05 million and net income at US$4.7 million, reversing a loss from the previous year. Earnings are forecast to grow 34% annually over the next three years, outpacing both revenue growth and market averages in Canada.
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According our earnings growth report, there's an indication that Docebo might be ready to expand.
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Get an in-depth perspective on Docebo's balance sheet by reading our health report here.
NanoXplore
Overview: NanoXplore Inc. is a graphene company that manufactures and supplies graphene powder for industrial markets, with a market cap of CA$371.93 million.
Operations: NanoXplore generates revenue from manufacturing and supplying graphene powder for various industrial markets.
Estimated Discount To Fair Value: 45%
NanoXplore Inc. is trading at CA$2.31, significantly below its estimated fair value of CA$4.20, indicating it may be undervalued based on cash flows. Despite having less than a year of cash runway, the company is forecast to grow revenues by 22.8% annually and become profitable within three years, outpacing market averages in Canada. The recent addition of Ms. Hélène V. Gagnon to the Board could enhance governance and sustainability efforts, potentially boosting investor confidence.