Docebo And 2 Other TSX Stocks That Might Be Undervalued

Over the last 7 days, the Canadian market has dropped 2.3%, but it remains up 9.5% over the past year with earnings forecasted to grow by 15% annually. In this fluctuating environment, identifying undervalued stocks like Docebo and two others can present compelling opportunities for investors seeking value amidst volatility.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
goeasy (TSX:GSY)	CA$193.59	CA$351.64	44.9%
Amerigo Resources (TSX:ARG)	CA$1.56	CA$3.07	49.2%
Kinaxis (TSX:KXS)	CA$146.26	CA$288.31	49.3%
Viemed Healthcare (TSX:VMD)	CA$10.45	CA$20.08	48%
Constellation Software (TSX:CSU)	CA$4049.73	CA$7153.94	43.4%
Boyd Group Services (TSX:BYD)	CA$227.02	CA$403.76	43.8%
Energy Fuels (TSX:EFR)	CA$6.83	CA$13.10	47.9%
NanoXplore (TSX:GRA)	CA$2.30	CA$4.22	45.4%
TerrAscend (TSX:TSND)	CA$1.79	CA$3.24	44.7%
Kits Eyecare (TSX:KITS)	CA$9.73	CA$19.18	49.3%

Click here to see the full list of 22 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

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

Docebo (TSX:DCBO)

Overview: Docebo Inc. is a learning management software company offering an AI-powered learning platform across North America and internationally, with a market cap of CA$1.54 billion.

Operations: The company generates $190.78 million from its educational software segment.

Estimated Discount To Fair Value: 24.5%

Docebo Inc. (CA$50.82) is trading 24.5% below its estimated fair value of CA$67.28, highlighting its potential as an undervalued stock based on cash flows. Despite a decline in profit margins from 10% to 3.5%, the company reported significant earnings growth with Q1 net income rising to US$5.17 million from US$1.25 million year-over-year and revenue increasing to US$51.4 million from US$41.46 million, underscoring strong financial performance and future growth prospects.

• Our earnings growth report unveils the potential for significant increases in Docebo's future results.
• Unlock comprehensive insights into our analysis of Docebo stock in this financial health report.

GFL Environmental (TSX:GFL)

Overview: GFL Environmental Inc. provides non-hazardous solid waste management and environmental services in Canada and the United States, with a market cap of CA$20.89 billion.

Operations: The company's revenue segments include CA$4.79 billion from Solid Waste in the USA, CA$2.16 billion from Solid Waste in Canada, and CA$1.67 billion from Environmental Services.

Estimated Discount To Fair Value: 33.8%

GFL Environmental (CA$55.49) is trading 33.8% below its estimated fair value of CA$83.79, indicating it may be undervalued based on cash flows. Despite a net loss of CA$471.2 million in Q2 2024 and a revised revenue guidance between $7,900 million and $7,925 million for the year, GFL's earnings are forecast to grow significantly at 115.13% per year with expected profitability within three years, suggesting strong future growth potential despite current financial challenges.

• The analysis detailed in our GFL Environmental growth report hints at robust future financial performance.
• Click here and access our complete balance sheet health report to understand the dynamics of GFL Environmental.

NanoXplore (TSX:GRA)

Overview: NanoXplore Inc., a graphene company with a market cap of CA$392.40 million, manufactures and supplies graphene powder for industrial markets.

Operations: NanoXplore generates revenue from manufacturing and supplying graphene powder for industrial applications.

Estimated Discount To Fair Value: 45.4%

NanoXplore (CA$2.3) is trading 45.4% below its fair value estimate of CA$4.22, highlighting potential undervaluation based on cash flows. Despite reporting a net loss of CA$3.09 million in Q3 2024, the company’s revenue grew to CA$33.87 million from CA$31.58 million year-over-year and is forecast to grow at 22.8% annually, outpacing the Canadian market's growth rate of 6.8%. Additionally, NanoXplore is expected to achieve profitability within three years with earnings projected to grow at 59.35% per year.

• Our expertly prepared growth report on NanoXplore implies its future financial outlook may be stronger than recent results.
• Delve into the full analysis health report here for a deeper understanding of NanoXplore.

Key Takeaways

• Take a closer look at our Undervalued TSX Stocks Based On Cash Flows list of 22 companies by clicking here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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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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