Stock Analysis

TSX Value Picks Including Allied Gold And 2 More Stocks Trading Below Estimated Worth

As the Canadian market navigates an environment of improving labour productivity and contained unit labour costs, investors are keeping a close eye on potential value opportunities. With corporate earnings growth showing resilience and inflation remaining relatively stable, identifying undervalued stocks becomes crucial for those looking to capitalize on these favorable economic conditions. In this context, Allied Gold and two other stocks stand out as promising candidates trading below their estimated worth.

Advertisement

Top 10 Undervalued Stocks Based On Cash Flows In Canada

NameCurrent PriceFair Value (Est)Discount (Est)
West Fraser Timber (TSX:WFG)CA$99.54CA$173.9942.8%
Vitalhub (TSX:VHI)CA$13.51CA$24.0943.9%
TerraVest Industries (TSX:TVK)CA$165.41CA$309.2046.5%
Savaria (TSX:SIS)CA$21.22CA$42.2149.7%
K92 Mining (TSX:KNT)CA$14.84CA$28.1847.3%
Groupe Dynamite (TSX:GRGD)CA$39.64CA$70.8944.1%
goeasy (TSX:GSY)CA$210.01CA$382.5445.1%
Blackline Safety (TSX:BLN)CA$6.22CA$10.1638.8%
Avino Silver & Gold Mines (TSX:ASM)CA$5.38CA$9.8745.5%
Allied Gold (TSX:AAUC)CA$16.39CA$28.9243.3%

Click here to see the full list of 24 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Allied Gold (TSX:AAUC)

Overview: Allied Gold Corporation, along with its subsidiaries, is engaged in the exploration and production of mineral deposits in Africa and has a market cap of CA$1.84 billion.

Operations: The company's revenue segments include the Agbaou Mine generating $213.19 million, the Bonikro Mine contributing $247.48 million, and the Sadiola Mine accounting for $497.42 million.

Estimated Discount To Fair Value: 43.3%

Allied Gold appears undervalued, trading at CA$16.39, significantly below its estimated fair value of CA$28.92. Despite a net loss of US$25.41 million in Q2 2025, the company reported sales growth to US$251.98 million from US$195.61 million a year ago and forecasts robust annual revenue growth of 22.4%. While shareholders faced substantial dilution recently, Allied Gold is expected to become profitable within three years, outpacing average market growth rates in Canada.

TSX:AAUC Discounted Cash Flow as at Aug 2025
TSX:AAUC Discounted Cash Flow as at Aug 2025

Cineplex (TSX:CGX)

Overview: Cineplex Inc., along with its subsidiaries, operates as an entertainment and media company in Canada and internationally, with a market cap of CA$655.34 million.

Operations: The company's revenue is derived from three main segments: Media (CA$141.23 million), Location-Based Entertainment (CA$132.24 million), and Film Entertainment and Content (CA$1.03 billion).

Estimated Discount To Fair Value: 11.8%

Cineplex's recent earnings report shows improved financials with Q2 2025 revenue rising to C$361.82 million from C$277.34 million a year ago, while net loss narrowed significantly. Trading at C$10.73, Cineplex is undervalued compared to its estimated fair value of C$12.17 and offers good relative value against peers. Revenue growth is forecasted at 7.3% annually, outpacing the Canadian market average of 4%, with profitability expected within three years despite negative equity concerns.

TSX:CGX Discounted Cash Flow as at Aug 2025
TSX:CGX Discounted Cash Flow as at Aug 2025

Triple Flag Precious Metals (TSX:TFPM)

Overview: Triple Flag Precious Metals Corp. is a precious metals streaming and royalty company that acquires and manages mineral interests across various countries, with a market cap of CA$7.65 billion.

Operations: The company's revenue primarily comes from its Metals & Mining segment, specifically Gold & Other Precious Metals, totaling $324.21 million.

Estimated Discount To Fair Value: 23.9%

Triple Flag Precious Metals is trading at CA$36.84, significantly below its fair value of CA$48.38, highlighting its undervaluation based on cash flows. The company reported a strong turnaround with Q2 2025 earnings of US$55.74 million compared to a loss last year and expects annual earnings growth of over 20%, surpassing the Canadian market's average growth rate. Despite recent insider selling, the company's profitability and revenue growth projections remain robust.

TSX:TFPM Discounted Cash Flow as at Aug 2025
TSX:TFPM Discounted Cash Flow as at Aug 2025

Summing It All Up

Ready For A Different Approach?

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we're here to simplify it.

Discover if Triple Flag Precious Metals might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

About TSX:TFPM

Triple Flag Precious Metals

A precious metals streaming and royalty company, engages in acquiring and managing precious metals, streams, royalties, and other mineral interests in Australia, Canada, Colombia, Cote d’Ivoire, Honduras, Mexico, Mongolia, Peru, South Africa, and the United States.

Flawless balance sheet with acceptable track record.

Advertisement