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Exploring Undiscovered Canadian Stocks In July 2024
Reviewed by Simply Wall St
As the U.S. presidential campaign unfolds, key economic issues such as government debt and trade policies are poised to influence market sentiment, potentially impacting sectors across borders including Canada's small-cap stocks. In this context, exploring undiscovered Canadian stocks in July 2024 could reveal opportunities that align well with broader market dynamics and the current economic environment.
Top 10 Undiscovered Gems With Strong Fundamentals In Canada
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| TWC Enterprises | 7.71% | 8.87% | 30.01% | ★★★★★★ |
| Reconnaissance Energy Africa | NA | 66.35% | -25.78% | ★★★★★★ |
| Taiga Building Products | NA | 7.62% | 15.46% | ★★★★★★ |
| Frontera Energy | 28.78% | -0.59% | 34.36% | ★★★★★☆ |
| Santacruz Silver Mining | 13.08% | 53.09% | 46.68% | ★★★★★☆ |
| Mako Mining | 28.08% | 39.01% | 48.79% | ★★★★★☆ |
| Queen's Road Capital Investment | 7.20% | 22.14% | 22.20% | ★★★★☆☆ |
| Genesis Land Development | 39.50% | 22.73% | 41.36% | ★★★★☆☆ |
| Senvest Capital | 54.38% | 2.12% | -0.88% | ★★★★☆☆ |
| Fairfax India Holdings | 17.90% | 2.65% | 1.15% | ★★★★☆☆ |
Let's uncover some gems from our specialized screener.
Lassonde Industries (TSX:LAS.A)
Simply Wall St Value Rating: ★★★★★★
Overview: Lassonde Industries Inc. is a company that focuses on the development, manufacturing, and marketing of ready-to-drink beverages, fruit-based snacks, and frozen juice concentrates across Canada, the U.S., and other international markets, with a market capitalization of CA$1.10 billion.
Operations: This entity primarily generates its revenue from the sale of non-alcoholic beverages, with a recent gross profit margin of 25.70%. The company's cost structure is heavily influenced by the cost of goods sold (COGS), which amounted to CA$1.74 billion in the latest reporting period, representing a significant portion of total expenses.
Lassonde Industries, a lesser-known yet robust player in the Canadian market, has demonstrated notable financial resilience and growth potential. Recently reporting a strong earnings increase with net income rising to CAD 23.84 million from CAD 17.11 million year-over-year and sales growth of about 4%, the company is poised for continued expansion. Its debt to equity ratio improved significantly from 48% to just under 17% over five years, reflecting prudent financial management. Additionally, Lassonde's earnings growth of nearly 68% last year outpaced its industry average, underscoring its competitive edge and operational efficiency.
- Click here to discover the nuances of Lassonde Industries with our detailed analytical health report.
Understand Lassonde Industries' track record by examining our Past report.
Lassonde Industries (TSX:LAS.A)
Simply Wall St Value Rating: ★★★★★★
Overview: Lassonde Industries Inc. is a company that focuses on the development, manufacturing, and marketing of ready-to-drink beverages, fruit-based snacks, and frozen juice concentrates across Canada, the U.S., and other international markets, with a market capitalization of CA$1.10 billion.
Operations: This entity primarily generates its revenue from the sale of non-alcoholic beverages, with a recent gross profit margin of 25.70%. The company's cost structure is heavily influenced by the cost of goods sold (COGS), which amounted to CA$1.74 billion in the latest reporting period, representing a significant portion of total expenses.
Lassonde Industries, a lesser-known yet robust player in the Canadian market, has demonstrated notable financial resilience and growth potential. Recently reporting a strong earnings increase with net income rising to CAD 23.84 million from CAD 17.11 million year-over-year and sales growth of about 4%, the company is poised for continued expansion. Its debt to equity ratio improved significantly from 48% to just under 17% over five years, reflecting prudent financial management. Additionally, Lassonde's earnings growth of nearly 68% last year outpaced its industry average, underscoring its competitive edge and operational efficiency.
- Click here to discover the nuances of Lassonde Industries with our detailed analytical health report.
Understand Lassonde Industries' track record by examining our Past report.
North West (TSX:NWC)
Simply Wall St Value Rating: ★★★★★★
Overview: The North West Company Inc. operates as a retailer specializing in food and everyday products and services, serving rural communities and urban neighborhoods in northern Canada, rural Alaska, the South Pacific, and the Caribbean, with a market capitalization of CA$2.06 billion.
Operations: This retailer generates its revenue primarily from the sale of food and everyday products and services, with a gross profit margin recently reported at 33.02%. The company's costs are largely driven by the cost of goods sold, which amounted to CA$1.67 billion in the latest reporting period.
North West Company, a lesser-highlighted player in the Canadian market, reported a robust earnings growth of 15.8% this past year, surpassing its industry's average of 5.7%. With a net debt to equity ratio improved to 31.5%, reflecting a reduction from 95.9% over five years, and interest payments well-covered by EBIT (10.9x), the firm presents as financially sound. Recently, North West declared a quarterly dividend of $0.39 per share and showcased sales increasing to CAD 617 million from CAD 594 million year-over-year in Q1 2024, underscoring its potential as an attractive investment opportunity amidst larger competitors.
- Click here and access our complete health analysis report to understand the dynamics of North West.
Gain insights into North West's historical performance by reviewing our past performance report.
North West (TSX:NWC)
Simply Wall St Value Rating: ★★★★★★
Overview: The North West Company Inc. operates as a retailer specializing in food and everyday products and services, serving rural communities and urban neighborhoods in northern Canada, rural Alaska, the South Pacific, and the Caribbean, with a market capitalization of CA$2.06 billion.
Operations: This retailer generates its revenue primarily from the sale of food and everyday products and services, with a gross profit margin recently reported at 33.02%. The company's costs are largely driven by the cost of goods sold, which amounted to CA$1.67 billion in the latest reporting period.
North West Company, a lesser-highlighted player in the Canadian market, reported a robust earnings growth of 15.8% this past year, surpassing its industry's average of 5.7%. With a net debt to equity ratio improved to 31.5%, reflecting a reduction from 95.9% over five years, and interest payments well-covered by EBIT (10.9x), the firm presents as financially sound. Recently, North West declared a quarterly dividend of $0.39 per share and showcased sales increasing to CAD 617 million from CAD 594 million year-over-year in Q1 2024, underscoring its potential as an attractive investment opportunity amidst larger competitors.
- Click here and access our complete health analysis report to understand the dynamics of North West.
Gain insights into North West's historical performance by reviewing our past performance report.
Senvest Capital (TSX:SEC)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Senvest Capital Inc. operates primarily through its subsidiaries, managing a diverse portfolio of equity and real estate investments across the United States and globally, with a market capitalization of CA$818.14 million.
Operations: SEC focuses on managing its own investments and those of various funds, generating revenue primarily from these activities. The company consistently achieves a gross profit margin of 100%, indicating that it incurs no cost of goods sold.
Senvest Capital, often overlooked, has shown notable financial agility. Recently, the firm reported a revenue of CAD 164 million and net income of CAD 52 million in Q1 2024, up from the previous year. Notably trading at 13.4% below its estimated fair value, it also boasts a robust cash position exceeding total debt. Additionally, Senvest completed a share repurchase program acquiring 6,500 shares for CAD 2.04 million last December, underscoring confidence in its value proposition amidst market fluctuations.
Senvest Capital (TSX:SEC)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Senvest Capital Inc. operates primarily through its subsidiaries, managing a diverse portfolio of equity and real estate investments across the United States and globally, with a market capitalization of CA$818.14 million.
Operations: SEC focuses on managing its own investments and those of various funds, generating revenue primarily from these activities. The company consistently achieves a gross profit margin of 100%, indicating that it incurs no cost of goods sold.
Senvest Capital, often overlooked, has shown notable financial agility. Recently, the firm reported a revenue of CAD 164 million and net income of CAD 52 million in Q1 2024, up from the previous year. Notably trading at 13.4% below its estimated fair value, it also boasts a robust cash position exceeding total debt. Additionally, Senvest completed a share repurchase program acquiring 6,500 shares for CAD 2.04 million last December, underscoring confidence in its value proposition amidst market fluctuations.
Next Steps
- Gain an insight into the universe of 43 TSX Undiscovered Gems With Strong Fundamentals by clicking here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Ready For A Different Approach?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
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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About TSX:SEC
Senvest Capital
Through its subsidiaries, holds investments in equity and real estate holdings in the United States and internationally.
