3 TSX Stocks Estimated To Be Trading At Discounts Of Up To 50%
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The Canadian market has experienced a robust 23% increase over the last 12 months, with earnings projected to grow by 15% annually. In this thriving environment, identifying stocks that are potentially undervalued can offer opportunities for investors seeking to capitalize on discrepancies between market price and intrinsic value.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| goeasy (TSX:GSY) | CA$188.17 | CA$360.32 | 47.8% |
| Computer Modelling Group (TSX:CMG) | CA$12.05 | CA$21.88 | 44.9% |
| VersaBank (TSX:VBNK) | CA$20.69 | CA$41.31 | 49.9% |
| Trisura Group (TSX:TSU) | CA$43.92 | CA$87.82 | 50% |
| Kinaxis (TSX:KXS) | CA$158.07 | CA$283.54 | 44.3% |
| Endeavour Mining (TSX:EDV) | CA$31.52 | CA$55.96 | 43.7% |
| Viemed Healthcare (TSX:VMD) | CA$10.45 | CA$20.08 | 48% |
| Sandstorm Gold (TSX:SSL) | CA$8.10 | CA$13.79 | 41.3% |
| Blackline Safety (TSX:BLN) | CA$6.38 | CA$10.98 | 41.9% |
| Boyd Group Services (TSX:BYD) | CA$212.00 | CA$343.04 | 38.2% |
Let's dive into some prime choices out of the screener.
Triple Flag Precious Metals
Overview: Triple Flag Precious Metals Corp. is a streaming and royalty company that focuses on acquiring and managing precious metals interests across various countries, with a market cap of approximately CA$4.55 billion.
Operations: The company's revenue segment primarily consists of acquiring and managing precious metal and other high-quality streams and royalties, generating $222.27 million.
Estimated Discount To Fair Value: 26.8%
Triple Flag Precious Metals is trading at a significant discount to its estimated fair value of CA$30.83, with its current price at CA$22.58. Despite recent insider selling, the company shows potential for profitability within three years, outpacing average market growth forecasts. Recent quarterly revenue of US$73.7 million from record metal sales highlights robust cash flow generation, bolstered by strategic acquisitions like the 3% gold streams on Agbaou and Bonikro mines for US$53 million.
Trisura Group
Overview: Trisura Group Ltd. is a specialty insurance company engaged in surety, risk solutions, corporate insurance, and reinsurance across Canada, the United States, and internationally with a market cap of CA$2.09 billion.
Operations: The company's revenue is primarily derived from Trisura Specialty, generating CA$935.87 million, and Trisura US Programs, contributing CA$2.03 billion.