The Canadian market has experienced a slight downturn, with the TSX down about 3% amid a broader economic slowdown and softening labor market data. Despite these challenges, opportunities remain for discerning investors to uncover undervalued stocks that could offer substantial growth potential. In this article, we explore three undiscovered gems in Canada that stand out due to their strong fundamentals and resilience in the current market environment.
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% | ★★★★★★ |
Taiga Building Products | NA | 6.05% | 10.50% | ★★★★★★ |
Amerigo Resources | 12.87% | 7.49% | 12.97% | ★★★★★☆ |
Tenaz Energy | NA | 33.64% | 50.62% | ★★★★★☆ |
Mako Mining | 22.90% | 38.12% | 54.79% | ★★★★★☆ |
Firan Technology Group | 17.91% | 3.75% | 23.32% | ★★★★★☆ |
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% | ★★★★☆☆ |
Here's a peek at a few of the choices from the screener.
Extendicare
Simply Wall St Value Rating: ★★★★☆☆
Overview: Extendicare Inc., with a market cap of CA$742.86 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 Canadian healthcare provider, has shown impressive earnings growth of 3957.1% over the past year, far outpacing the industry average of 6%. The company's EBIT covers its interest payments 5.9 times over, indicating strong financial health despite a high net debt to equity ratio of 133.7%. With a price-to-earnings ratio at 12.8x compared to the broader market's 14.9x and consistent dividends (CAD$0.04 per share), Extendicare presents an intriguing investment opportunity in Canada’s healthcare sector.
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Take a closer look at Extendicare's potential here in our health report.
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Examine Extendicare's past performance report to understand how it has performed in the past.
North West
Simply Wall St Value Rating: ★★★★★★
Overview: The North West Company Inc., with a market cap of CA$2.47 billion, operates through its subsidiaries to retail food and everyday products and services in rural communities and urban neighborhood markets across northern Canada, rural Alaska, the South Pacific, and the Caribbean.