3 TSX Stocks Estimated To Be Trading At Up To 26.3% Discount

As the Canadian market navigates a period of volatility, driven by uncertainties in the U.S. labor market, geopolitical tensions, and upcoming elections, the TSX has shown resilience with a notable 14% rise over the first three quarters of the year. In such an environment, identifying undervalued stocks becomes crucial for investors seeking opportunities to capitalize on potential discounts while considering solid economic fundamentals and moderating inflation trends.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
goeasy (TSX:GSY)	CA$182.97	CA$361.57	49.4%
Computer Modelling Group (TSX:CMG)	CA$11.75	CA$21.96	46.5%
Savaria (TSX:SIS)	CA$22.20	CA$41.08	46%
Kinaxis (TSX:KXS)	CA$160.46	CA$280.99	42.9%
Real Matters (TSX:REAL)	CA$9.06	CA$17.77	49%
Viemed Healthcare (TSX:VMD)	CA$10.45	CA$20.08	48%
Bragg Gaming Group (TSX:BRAG)	CA$6.60	CA$10.57	37.6%
Blackline Safety (TSX:BLN)	CA$6.01	CA$11.13	46%
Boyd Group Services (TSX:BYD)	CA$208.75	CA$339.24	38.5%
Opsens (TSX:OPS)	CA$2.90	CA$4.64	37.5%

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.

AtkinsRéalis Group (TSX:ATRL)

Overview: AtkinsRéalis is a global integrated professional services and project management company with a market cap of CA$10.28 billion.

Operations: The company's revenue segments include Capital at CA$127.40 million, Nuclear at CA$1.20 billion, and LSTK Projects at CA$318.44 million.

Estimated Discount To Fair Value: 23.8%

AtkinsRéalis Group, trading at CA$58.72, is undervalued based on discounted cash flow analysis with a fair value estimate of CA$77.02. The company forecasts significant earnings growth of over 26% annually, outperforming the Canadian market's average. However, its debt coverage by operating cash flow remains a concern. Recent contracts in infrastructure and energy sectors enhance its revenue potential but also highlight the need for improved financial positioning to capitalize on growth opportunities efficiently.

• In light of our recent growth report, it seems possible that AtkinsRéalis Group's financial performance will exceed current levels.
• Take a closer look at AtkinsRéalis Group's balance sheet health here in our report.

Docebo (TSX:DCBO)

Overview: Docebo Inc. is a learning management software company offering an AI-powered learning platform globally, with a market cap of CA$1.78 billion.

Operations: The company generates revenue primarily from its educational software segment, amounting to $200.24 million.

Estimated Discount To Fair Value: 18.1%

Docebo, trading at CA$58.84, is undervalued with a fair value estimate of CA$71.84 based on discounted cash flow analysis. The company anticipates substantial earnings growth of 34% annually, surpassing the Canadian market average. Recent financials show a positive turnaround with net income reaching US$4.7 million for Q2 2024 from a previous loss, and its strategic partnership with TEDAI Vienna underscores Docebo's commitment to leveraging AI in enterprise learning solutions.

• Upon reviewing our latest growth report, Docebo's projected financial performance appears quite optimistic.
• Get an in-depth perspective on Docebo's balance sheet by reading our health report here.

Energy Fuels (TSX:EFR)

Overview: Energy Fuels Inc. operates in the United States, focusing on the extraction, recovery, recycling, exploration, permitting, evaluation, and sale of uranium mineral properties with a market cap of CA$1.50 billion.

Operations: The company's revenue segment is derived entirely from Metals & Minings - Miscellaneous, totaling $45.60 million.

Estimated Discount To Fair Value: 26.3%

Energy Fuels, trading at CA$7.71, is undervalued with a fair value estimate of CA$10.46 based on discounted cash flow analysis. Despite recent financial losses, the company's revenue growth forecast of 43.2% annually outpaces the Canadian market average. The acquisition of Base Resources Limited could enhance its strategic position and future profitability as it aims to become profitable within three years, although shareholder dilution has occurred over the past year.

• The analysis detailed in our Energy Fuels growth report hints at robust future financial performance.
• Delve into the full analysis health report here for a deeper understanding of Energy Fuels.

Summing It All Up

• Explore the 24 names from our Undervalued TSX Stocks Based On Cash Flows screener here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

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