Discovering Canada's Hidden Stock Gems for September 2024
In This Article:
Over the last 7 days, the Canadian market has dropped 2.3%, but it has risen by 12% over the past year, with earnings expected to grow by 15% annually in the coming years. In this fluctuating yet promising environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding.
Top 10 Undiscovered Gems With Strong Fundamentals In Canada
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| TWC Enterprises | 6.74% | 10.99% | 25.68% | ★★★★★★ |
| Reconnaissance Energy Africa | NA | 15.28% | 7.58% | ★★★★★★ |
| Jaguar Mining | 1.19% | 5.49% | 5.12% | ★★★★★★ |
| Taiga Building Products | NA | 6.05% | 10.50% | ★★★★★★ |
| Tenaz Energy | NA | 33.64% | 50.62% | ★★★★★☆ |
| Firan Technology Group | 17.91% | 3.75% | 23.32% | ★★★★★☆ |
| Mako Mining | 22.90% | 38.12% | 54.79% | ★★★★★☆ |
| Pizza Pizza Royalty | 15.66% | 3.64% | 3.95% | ★★★★☆☆ |
| Queen's Road Capital Investment | 7.20% | 22.14% | 22.20% | ★★★★☆☆ |
| Genesis Land Development | 53.32% | 25.58% | 47.05% | ★★★★☆☆ |
Let's explore several standout options from the results in the screener.
Extendicare
Simply Wall St Value Rating: ★★★★☆☆
Overview: Extendicare Inc., with a market cap of CA$737.85 million, operates through its subsidiaries to provide care and services for seniors in Canada.
Operations: Extendicare generates revenue primarily from Long-Term Care (CA$798.80 million), Home Health Care (CA$525.16 million), and Managed Services (CA$64.32 million).
Extendicare, a small-cap healthcare provider in Canada, has seen its earnings skyrocket by 3957.1% over the past year, outpacing the industry average of 6%. The company’s debt-to-equity ratio has improved significantly from 405.7% to 261.6% over five years, although it remains high at 133.7%. With a P/E ratio of 12.4x, Extendicare is trading below the Canadian market average of 14.8x and boasts well-covered interest payments with EBIT covering interest expenses by nearly six times (5.9x).
-
Delve into the full analysis health report here for a deeper understanding of Extendicare.
-
Gain insights into Extendicare's past trends and performance with our Past report.
North West
Simply Wall St Value Rating: ★★★★★★
Overview: The North West Company Inc. operates as a retailer of food and everyday products and services in rural communities and urban neighborhood markets across northern Canada, rural Alaska, the South Pacific, and the Caribbean with a market cap of CA$2.45 billion.
Operations: North West generates CA$2.52 billion in revenue from retailing food and everyday products and services. The company's market cap stands at CA$2.45 billion.
North West, a small Canadian retailer, has demonstrated high-quality earnings and robust debt management. Over the past five years, its debt to equity ratio has improved from 96.7% to 43.2%, and net debt to equity stands at a satisfactory 31.4%. Recent earnings grew by 9.5%, outpacing the Consumer Retailing industry’s -7.7%. Trading at 45% below estimated fair value, North West appears undervalued with well-covered interest payments (10.9x EBIT).