3 TSX Stocks Estimated To Be Trading Up To 46.2% Below Intrinsic Value

As the TSX reaches new all-time highs, fueled by optimism surrounding central bank policies and robust corporate earnings, investors are navigating a market landscape that remains resilient despite looming U.S. election uncertainties. In this environment of cautious optimism, identifying stocks trading below their intrinsic value can present unique opportunities for those looking to capitalize on potential market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
Computer Modelling Group (TSX:CMG)	CA$11.12	CA$22.04	49.5%
Savaria (TSX:SIS)	CA$22.13	CA$41.12	46.2%
Endeavour Mining (TSX:EDV)	CA$32.18	CA$62.27	48.3%
Real Matters (TSX:REAL)	CA$9.27	CA$17.62	47.4%
Viemed Healthcare (TSX:VMD)	CA$10.45	CA$20.08	48%
Kinaxis (TSX:KXS)	CA$160.03	CA$279.60	42.8%
Bragg Gaming Group (TSX:BRAG)	CA$6.58	CA$10.62	38.1%
Blackline Safety (TSX:BLN)	CA$5.88	CA$11.02	46.7%
Boyd Group Services (TSX:BYD)	CA$205.00	CA$336.50	39.1%
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.

We'll examine a selection from our screener results.

GFL Environmental (TSX:GFL)

Overview: GFL Environmental Inc. provides non-hazardous solid waste management and environmental services across Canada and the United States, with a market cap of CA$21.04 billion.

Operations: The company's revenue segments include CA$4.79 billion from solid waste operations in the USA, CA$2.16 billion from solid waste activities in Canada, and CA$1.67 billion from environmental services.

Estimated Discount To Fair Value: 33.3%

GFL Environmental is trading at CA$53.35, significantly below its estimated fair value of CA$79.96, suggesting it may be undervalued based on cash flows. Despite recent net losses, the company has raised its revenue guidance for 2024 to between $7.9 billion and $7.925 billion and forecasts earnings growth of over 115% annually, becoming profitable in three years with above-market growth expectations. However, shareholders experienced dilution recently and significant insider selling occurred last quarter.

• The analysis detailed in our GFL Environmental growth report hints at robust future financial performance.
• Click here to discover the nuances of GFL Environmental with our detailed financial health report.

Ivanhoe Mines (TSX:IVN)

Overview: Ivanhoe Mines Ltd. is involved in the mining, development, and exploration of minerals and precious metals primarily in Africa, with a market cap of CA$27.42 billion.

Operations: Ivanhoe Mines Ltd. generates its revenue through activities related to the extraction, development, and exploration of minerals and precious metals in Africa.

Estimated Discount To Fair Value: 14.0%

Ivanhoe Mines is trading at CA$20.16, slightly below its fair value estimate of CA$23.43, reflecting potential undervaluation based on cash flows. The company has achieved record copper production and milling rates at the Kamoa-Kakula Copper Complex, with further improvements expected as new equipment comes online. Despite recent earnings declines, Ivanhoe forecasts robust revenue growth of 84.2% annually and a significant profit increase of 67.7%, though shareholder dilution has occurred recently.

• In light of our recent growth report, it seems possible that Ivanhoe Mines' financial performance will exceed current levels.
• Click to explore a detailed breakdown of our findings in Ivanhoe Mines' balance sheet health report.

Savaria (TSX:SIS)

Overview: Savaria Corporation offers accessibility solutions for the elderly and physically challenged across Canada, the United States, Europe, and internationally with a market cap of CA$1.57 billion.

Operations: The company generates revenue from its Patient Care segment amounting to CA$183.98 million, with a Segment Adjustment of CA$673.74 million.

Estimated Discount To Fair Value: 46.2%

Savaria Corporation is trading at CA$22.13, significantly below its estimated fair value of CA$41.12, indicating undervaluation based on cash flows. The company reported a rise in quarterly sales to CA$221.34 million and net income to CA$10.96 million, showing improved financial performance. Despite significant insider selling recently, earnings are forecasted to grow substantially at 30% annually over the next three years, outpacing the Canadian market growth rate of 14.6%.

• The growth report we've compiled suggests that Savaria's future prospects could be on the up.
• Navigate through the intricacies of Savaria with our comprehensive financial health report here.

Summing It All Up

• Discover the full array of 24 Undervalued TSX Stocks Based On Cash Flows right here.
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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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