Boyd Group Services And 2 More TSX Stocks Estimated Below Intrinsic Value For Your Investment Consideration

The Canadian market has shown robust growth, with a 4.0% increase in the last week and a 12% rise over the past year, alongside an optimistic forecast of 15% annual earnings growth. In such an environment, identifying stocks that are priced below their intrinsic value could offer attractive opportunities for investors seeking potential gains.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
goeasy (TSX:GSY)	CA$190.15	CA$312.98	39.2%
Trisura Group (TSX:TSU)	CA$43.28	CA$80.18	46%
Kraken Robotics (TSXV:PNG)	CA$1.17	CA$2.24	47.7%
Kinaxis (TSX:KXS)	CA$167.75	CA$262.95	36.2%
Endeavour Mining (TSX:EDV)	CA$32.53	CA$48.64	33.1%
Viemed Healthcare (TSX:VMD)	CA$10.45	CA$20.08	48%
Amerigo Resources (TSX:ARG)	CA$1.73	CA$2.71	36.1%
Green Thumb Industries (CNSX:GTII)	CA$16.12	CA$28.29	43%
Opsens (TSX:OPS)	CA$2.90	CA$4.64	37.5%
Capstone Copper (TSX:CS)	CA$9.86	CA$19.41	49.2%

Click here to see the full list of 19 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

Boyd Group Services (TSX:BYD)

Overview: Boyd Group Services Inc. operates a network of non-franchised collision repair centers across North America and has a market capitalization of approximately CA$5.50 billion.

Operations: The company generates CA$3.02 billion from automotive collision repair and related services.

Estimated Discount To Fair Value: 27.7%

Boyd Group Services is trading at CA$263.41, significantly below its estimated fair value of CA$364.49, marking it as undervalued based on discounted cash flow analysis. Despite challenges in covering interest payments with earnings, Boyd's financial outlook is promising with expected significant earnings growth of 37.6% annually over the next three years, outpacing the Canadian market forecast of 15%. Additionally, revenue growth projections stand at 10.3% per year, also above the market average of 7.3%.

• Our growth report here indicates Boyd Group Services may be poised for an improving outlook.
• Dive into the specifics of Boyd Group Services here with our thorough financial health report.

Constellation Software (TSX:CSU)

Overview: Constellation Software Inc. operates globally, focusing on the acquisition, development, and management of vertical market software businesses primarily in Canada, the United States, and Europe, with a market capitalization of approximately CA$88.79 billion.

Operations: The company generates CA$8.84 billion from its software and programming segment.

Estimated Discount To Fair Value: 24.7%

Constellation Software, priced at CA$4200.62, is undervalued by 24.7% against a fair value of CA$5580.23, based on discounted cash flow analysis. Recent strategic expansions like the launch of Omegro enhance its global software presence, promising sustained growth with a focus on diverse software solutions and strong leadership under Co-CEOs Kevin Bradley and Troy O’Connor. Despite high debt levels and significant insider selling in the past quarter, Constellation's financial outlook remains robust with earnings expected to grow by 24.43% annually over the next three years—well above the Canadian market forecast of 15%.

• Upon reviewing our latest growth report, Constellation Software's projected financial performance appears quite optimistic.
• Click here to discover the nuances of Constellation Software with our detailed financial health report.

goeasy (TSX:GSY)

Overview: goeasy Ltd. operates in Canada, offering non-prime leasing and lending services through its easyhome, easyfinancial, and LendCare brands with a market capitalization of CA$3.09 billion.

Operations: The company generates revenue through its leasing and lending services, with CA$153.99 million from easyhome and CA$1.17 billion from easyfinancial.

Estimated Discount To Fair Value: 39.2%

goeasy Ltd., currently priced at CA$190.15, is assessed as undervalued by 39.2% relative to a fair value of CA$312.98, derived from discounted cash flow metrics. Despite challenges in debt coverage by operating cash flows and a dividend not well-supported by free cash flows, the company shows promising financial indicators with revenue and earnings forecasted to grow at 32.5% and 15.5% per year respectively—both outpacing the Canadian market projections of 7.3% and 14.6%. Recent executive changes signal a strategic transition with potential impacts on future leadership dynamics.

• Insights from our recent growth report point to a promising forecast for goeasy's business outlook.
• Delve into the full analysis health report here for a deeper understanding of goeasy.

Make It Happen

• Unlock our comprehensive list of 19 Undervalued TSX Stocks Based On Cash Flows by clicking here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Seeking Other Investments?

• 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.

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