3 TSX Stocks That Could Be Trading Below Their Estimated Value
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Recent market swings in Canada have increased as anxiety over a slowing economy and persistent inflation has sparked pullbacks. However, despite these fluctuations, stocks have delivered strong gains and sit near record highs. In this environment, identifying undervalued stocks can be particularly rewarding for investors looking to capitalize on potential growth opportunities amidst the volatility. Here are three TSX stocks that could be trading below their estimated value.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Computer Modelling Group (TSX:CMG) | CA$11.71 | CA$22.16 | 47.2% |
| Savaria (TSX:SIS) | CA$20.92 | CA$41.29 | 49.3% |
| Kinaxis (TSX:KXS) | CA$155.71 | CA$283.31 | 45% |
| Calian Group (TSX:CGY) | CA$44.20 | CA$72.59 | 39.1% |
| Africa Oil (TSX:AOI) | CA$1.88 | CA$3.74 | 49.8% |
| Viemed Healthcare (TSX:VMD) | CA$10.45 | CA$20.08 | 48% |
| Endeavour Mining (TSX:EDV) | CA$33.33 | CA$53.45 | 37.6% |
| Blackline Safety (TSX:BLN) | CA$5.31 | CA$10.20 | 48% |
| Opsens (TSX:OPS) | CA$2.90 | CA$4.64 | 37.5% |
| Boyd Group Services (TSX:BYD) | CA$213.03 | CA$340.25 | 37.4% |
Let's explore several standout options from the results in the screener.
AtkinsRéalis Group
Overview: AtkinsRéalis operates as an integrated professional services and project management company worldwide, with a market cap of CA$8.79 billion.
Operations: AtkinsRéalis generates revenue from several segments, including Capital (CA$127.40 million), Nuclear (CA$1.20 billion), and LSTK Projects (CA$318.44 million).
Estimated Discount To Fair Value: 34.1%
AtkinsRéalis Group is trading at CA$50.17, significantly below its estimated fair value of CA$76.16, indicating it may be undervalued based on cash flows. Earnings are forecast to grow 26.3% annually, outpacing the Canadian market's 15.3%. Despite a strong earnings growth outlook and recent strategic appointments bolstering leadership, debt coverage by operating cash flow remains a concern. Recent contract wins and raised earnings guidance for 2024 further support its potential for future growth.
Savaria
Overview: Savaria Corporation, with a market cap of CA$1.49 billion, offers accessibility solutions for the elderly and physically challenged individuals in Canada, the United States, Europe, and internationally.
Operations: Patient Care generated CA$183.98 million in revenue, while Segment Adjustment accounted for CA$673.74 million.