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Top Canadian (TSX) Growth Stocks
UPDATED Aug 06, 2022
What are the best Canadian (TSX) Growth Stocks?
According to our Simply Wall St analysis these are the best Canadian growth companies. We look for companies with high forecasted growth and healthy balance sheets that can deliver sustained growth over the long term.
Our criteria to find Top Growth Companies
Growth
- Companies with sustained revenue growth that outperforms the market are attractive to investors. These companies are most likely to appreciate in share price over time.
What do we look for?
- Is the company forecast to have high earnings growth.
Healthy Balance Sheet
- A healthy balance sheet is essential to drive growth opportunities and sustain the business.
- Repayments on debt take precedence over other initiatives to improve shareholder returns, so investors want to make sure the company is comfortably positioned to cover its debts.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
29 companies meet this criteria in the Canadian market
Ero Copper Corp., a base metals mining company, engages in the exploration, development, and production of mining projects in Brazil.
Growth Criteria
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings: ERO's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market
High Growth Revenue
Future ROE
Rewards
Trading at 89.6% below our estimate of its fair value
Earnings are forecast to grow 34.16% per year
Risks
High level of non-cash earnings
Shareholders have been diluted in the past year
Profit margins (34.4%) are lower than last year (49.4%)
Growth Criteria
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings: SKE is expected to become profitable in the next 3 years.
Revenue vs Market
High Growth Revenue
Future ROE
Rewards
Trading at 94.4% below our estimate of its fair value
Earnings are forecast to grow 49.8% per year
Risks
Has less than 1 year of cash runway
Makes less than USD$1m in revenue (CA$0)
Shareholders have been diluted in the past year
Nuvei Corporation provides payment technology solutions to merchants and partners in North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific.
Growth Criteria
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings: NVEI's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market
High Growth Revenue
Future ROE
Rewards
Trading at 76.8% below our estimate of its fair value
Earnings are forecast to grow 54.39% per year
Became profitable this year
Risks
Large one-off items impacting financial results
Ascot Resources Ltd. operates as a mineral development and exploration company in the United States and Canada.
Growth Criteria
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings: AOT is expected to become profitable in the next 3 years.
Revenue vs Market
High Growth Revenue
Future ROE
Rewards
Trading at 96.6% below our estimate of its fair value
Earnings are forecast to grow 76.68% per year
Risks
Has less than 1 year of cash runway
Makes less than USD$1m in revenue (CA$0)
Shareholders have been diluted in the past year
Galiano Gold Inc. engages in the exploration, development, and production of gold properties.
Growth Criteria
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings: GAU is expected to become profitable in the next 3 years.
Revenue vs Market
High Growth Revenue
Future ROE
Rewards
Trading at 95.8% below our estimate of its fair value
Earnings are forecast to grow 117.15% per year
Risks
Makes less than USD$1m in revenue ($0)
Does not have a meaningful market cap (CA$128M)
Tidewater Renewables Ltd. engages in production of renewable fuel in North America.
Growth Criteria
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings: LCFS's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market
High Growth Revenue
Future ROE
Rewards
Trading at 77.1% below our estimate of its fair value
Earnings are forecast to grow 48.11% per year
Risks
No risks detected for LCFS from our risks checks.
Salona Global Medical Device Corporation, through its subsidiaries, engages in the production and sale of medical devices and products in the United States.
Growth Criteria
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings: SGMD is expected to become profitable in the next 3 years.
Revenue vs Market
High Growth Revenue
Future ROE
Rewards
Earnings are forecast to grow 164.5% per year
Risks
Does not have a meaningful market cap (CA$40M)
Shareholders have been diluted in the past year
Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company.
Growth Criteria
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings: TRQ's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market
High Growth Revenue
Future ROE
Rewards
Trading at 93.8% below our estimate of its fair value
Earnings are forecast to grow 37.88% per year
Risks
Profit margins (28.3%) are lower than last year (41.1%)