Discovering Canada's Undiscovered Gems for September 2024
In This Article:
Over the last 7 days, the Canadian market has risen 1.2%, and over the past year, it has climbed 16%. With earnings forecast to grow by 15% annually, identifying promising stocks is crucial in this thriving 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% | ★★★★★★ |
| 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% | ★★★★☆☆ |
| Firm Capital Mortgage Investment | 57.73% | 9.38% | 5.91% | ★★★★☆☆ |
| 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.
Freehold Royalties
Simply Wall St Value Rating: ★★★★☆☆
Overview: Freehold Royalties Ltd. focuses on acquiring and managing royalty interests in crude oil, natural gas, natural gas liquids, and potash properties across Western Canada and the United States, with a market cap of CA$2.11 billion.
Operations: Freehold Royalties Ltd. generated CA$323.04 million in revenue from its oil and gas exploration and production activities. The company has a market cap of CA$2.11 billion.
Freehold Royalties, a Canadian oil and gas royalty company, reported net income of CAD 39.3 million for Q2 2024, up from CAD 24.26 million a year ago. Basic earnings per share rose to CAD 0.26 from CAD 0.16 in the same period last year. Despite negative earnings growth (-5.9%) over the past year, it outperformed the industry average (-36.7%). The company's net debt to equity ratio stands at a satisfactory 24.6%, with interest payments well covered by EBIT (15x).
Hammond Power Solutions
Simply Wall St Value Rating: ★★★★★★
Overview: Hammond Power Solutions Inc., along with its subsidiaries, designs, manufactures, and sells various transformers across Canada, the United States, Mexico, and India with a market cap of CA$1.56 billion.
Operations: Hammond Power Solutions generates CA$754.37 million in revenue from the manufacture and sale of transformers across multiple regions including Canada, the United States, Mexico, and India.
Hammond Power Solutions (HPS) has shown impressive performance, with earnings growing 12.3% over the past year, outpacing the Electrical industry’s 6.5%. The company's debt to equity ratio improved from 27.7% to 5% in five years, and its interest payments are well covered by EBIT at an impressive 87.6x coverage. Recently, HPS declared a quarterly dividend of CAD$0.275 per share and reported second-quarter sales of CAD$197 million compared to CAD$172 million last year.