As the Canadian market navigates ongoing tariff uncertainties, investors have shown resilience, with key indices like the TSX experiencing notable gains in May. In this environment of cautious optimism and potential economic adjustments, identifying promising small-cap stocks that can thrive despite external pressures becomes crucial.
Top 10 Undiscovered Gems With Strong Fundamentals In Canada
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Mako Mining | 6.32% | 19.64% | 64.11% | ★★★★★★ |
| TWC Enterprises | 4.02% | 13.46% | 16.81% | ★★★★★★ |
| Yellow Pages | NA | -11.43% | -17.61% | ★★★★★★ |
| Majestic Gold | 9.90% | 11.70% | 9.35% | ★★★★★★ |
| Pinetree Capital | 0.20% | 63.68% | 65.79% | ★★★★★★ |
| Itafos | 25.35% | 11.11% | 49.69% | ★★★★★★ |
| Corby Spirit and Wine | 57.06% | 9.84% | -5.44% | ★★★★☆☆ |
| Genesis Land Development | 48.16% | 31.08% | 55.45% | ★★★★☆☆ |
| Westshore Terminals Investment | NA | 0.29% | -6.35% | ★★★★☆☆ |
| Dundee | 2.02% | -35.84% | 57.23% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Sprott (TSX:SII)
Simply Wall St Value Rating: ★★★★★★
Overview: Sprott Inc. is a publicly owned asset management holding company with a market cap of CA$2.15 billion.
Operations: The company generates revenue primarily from Exchange Listed Products at $115.42 million and Managed Equities at $40.22 million, with Private Strategies contributing $25.67 million. The net profit margin is a key metric to consider for understanding profitability trends over time.
Sprott, a nimble player in the Canadian market, showcases robust financial health with its debt-free status and an impressive earnings growth of 8.7% over the past year, outpacing the Capital Markets industry average of 3.1%. The company reported Q1 2025 revenue at US$43.36 million and net income at US$11.96 million, reflecting solid performance compared to last year. A recent share repurchase program saw Sprott buy back 49,706 shares for CAD2.66 million, indicating confidence in its value proposition while maintaining high-quality earnings that contribute to its promising outlook amidst significant insider selling activity recently observed.
- Dive into the specifics of Sprott here with our thorough health report.
Review our historical performance report to gain insights into Sprott's's past performance.
Tamarack Valley Energy (TSX:TVE)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Tamarack Valley Energy Ltd. operates in the exploration, development, production, and sale of oil, natural gas, and natural gas liquids within the Western Canadian sedimentary basin and has a market cap of approximately CA$2.25 billion.
Operations: Tamarack Valley Energy generates revenue primarily from its oil and gas exploration and production activities, amounting to CA$1.44 billion. The company's financial performance is reflected in its net profit margin, which stands at 12.5%.
Tamarack Valley Energy, a Canadian energy player, has shown impressive earnings growth of 339.8% over the past year, outpacing the industry average of 3.9%. Trading at 31.3% below its estimated fair value, Tamarack seems to be an attractive proposition despite some challenges ahead with a forecasted earnings decline of 32.8% annually over the next three years. The company’s net debt to equity ratio stands at a satisfactory 37%, and it recently repurchased shares worth CAD 145.13 million (7.26%). However, it faces regulatory scrutiny with a CAD 25,500 penalty from the Alberta Energy Regulator for compliance issues in production data recording.
- Unlock comprehensive insights into our analysis of Tamarack Valley Energy stock in this health report.
Assess Tamarack Valley Energy's past performance with our detailed historical performance reports.
Santacruz Silver Mining (TSXV:SCZ)
Simply Wall St Value Rating: ★★★★★★
Overview: Santacruz Silver Mining Ltd. is involved in the acquisition, exploration, development, and operation of mineral properties in Latin America, with a market capitalization of CA$359.41 million.
Operations: Santacruz generates revenue primarily from its mineral properties, with significant contributions from the Bolivar ($84.16 million) and Zimapan ($81.69 million) segments. The company's net profit margin shows notable variation, reflecting the financial dynamics of its operations across different regions.
Santacruz Silver Mining, a nimble player in the mining sector, has recently turned profitable with net income hitting US$164.48 million for 2024, a stark contrast to last year's US$11.01 million loss. The company's earnings per share from continuing operations jumped to US$0.46 from a loss of US$0.03 previously, highlighting its financial turnaround aided by strategic asset acquisitions and operational efficiencies. Despite its volatile share price over recent months, Santacruz trades at 77.9% below estimated fair value, suggesting potential upside for investors as it continues to cover interest payments comfortably with EBIT at 17.7 times coverage and maintains positive free cash flow status.
- Delve into the full analysis health report here for a deeper understanding of Santacruz Silver Mining.
Gain insights into Santacruz Silver Mining's past trends and performance with our Past report.
Seize The Opportunity
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Looking For Alternative Opportunities?
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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.
Valuation is complex, but we're here to simplify it.
Discover if Sprott might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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