Undiscovered Gems In Canada Featuring Three Promising Small Caps
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The Canadian market has experienced increased volatility recently, driven by concerns over a slowing economy and persistent inflation, yet overall gains remain strong. In this landscape, identifying promising small-cap stocks requires a clear picture and an understanding of broader economic trends.
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% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Freehold Royalties
Simply Wall St Value Rating: ★★★★☆☆
Overview: Freehold Royalties Ltd. acquires and manages royalty interests in crude oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States with a market cap of CA$2.02 billion.
Operations: Freehold Royalties Ltd. generates revenue primarily from its oil and gas exploration and production segment, amounting to CA$323.04 million. The company focuses on managing royalty interests across various energy resources in Western Canada and the United States.
Freehold Royalties has demonstrated high-quality earnings and is currently trading at 59.5% below its estimated fair value. Over the past five years, its debt to equity ratio increased from 15.1% to 24.7%, yet remains satisfactory with interest payments well covered by EBIT (15.3x). Recent performance highlights include a net income of CAD 39.3 million for Q2 2024, up from CAD 24.26 million last year, and a production increase of 4%.
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Delve into the full analysis health report here for a deeper understanding of Freehold Royalties.
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Explore historical data to track Freehold Royalties' performance over time in our Past section.
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$1.52 billion.
Operations: HPS generates revenue primarily from the manufacture and sale of transformers, amounting to CA$754.37 million. The company has a market cap of CA$1.52 billion.