Undervalued Small Caps With Insider Action On TSX For November 2024

As the Canadian market navigates a landscape shaped by resilient economic indicators and cautious monetary policies, small-cap stocks on the TSX are capturing attention amidst broader market sentiment. In this environment, identifying promising stocks involves looking at those with strong fundamentals and potential insider activity, which can signal confidence in their future performance.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name	PE	PS	Discount to Fair Value	Value Rating
Sagicor Financial	1.1x	0.3x	36.91%	★★★★★★
Trican Well Service	8.0x	0.9x	18.11%	★★★★★☆
Calfrac Well Services	11.7x	0.2x	35.97%	★★★★★☆
Nexus Industrial REIT	13.1x	3.3x	25.62%	★★★★★☆
Rogers Sugar	15.4x	0.6x	48.18%	★★★★☆☆
Primaris Real Estate Investment Trust	13.0x	3.5x	45.13%	★★★★☆☆
Coveo Solutions	NA	3.7x	37.58%	★★★★☆☆
Hemisphere Energy	5.9x	2.3x	-214.07%	★★★☆☆☆
First National Financial	14.3x	4.0x	40.34%	★★★☆☆☆
European Residential Real Estate Investment Trust	NA	2.3x	-200.71%	★★★☆☆☆

Click here to see the full list of 24 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

Trulieve Cannabis (CNSX:TRUL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Trulieve Cannabis is a company engaged in the cultivation, production, and distribution of cannabis products, with a focus on the pharmaceutical segment and a market capitalization of approximately $1.8 billion.

Operations: The company generates revenue primarily from its pharmaceuticals segment, with the latest reported figure at $1.17 billion. The gross profit margin has recently been observed at 58.22%, reflecting a focus on managing production costs relative to sales. Operating expenses, including significant allocations to sales and marketing as well as general and administrative functions, impact overall profitability.

PE: -10.2x

Trulieve Cannabis, a smaller player in the Canadian market, has been expanding rapidly with new dispensaries across Florida. Despite reporting a net loss of US$60.21 million for Q3 2024, up from US$25.4 million the previous year, sales increased to US$284.28 million from US$275.2 million year-over-year. Their partnership with Black Buddha Cannabis aims to enhance product offerings in Arizona and Pennsylvania, reflecting their commitment to quality and innovation amidst high volatility and current unprofitability challenges over the next three years.

• Dive into the specifics of Trulieve Cannabis here with our thorough valuation report.

• Gain insights into Trulieve Cannabis' past trends and performance with our Past report.

Africa Oil (TSX:AOI)

Simply Wall St Value Rating: ★★★★★☆

Overview: Africa Oil is an oil and gas exploration and production company with operations primarily focused in Africa, holding a market cap of approximately $1.12 billion.

Operations: Africa Oil has consistently reported zero revenue over multiple periods, with net income fluctuating significantly. The company incurs substantial general and administrative expenses, reaching $31.9 million in 2023-12-31. Notably, the most recent data for 2024 shows a negative gross profit margin of 1%.

PE: -1.6x

Africa Oil, a Canadian small-cap company, is navigating challenging times with recent revenue of US$18.3 million for Q3 2024, down from US$51.3 million the previous year. A net loss of US$289.2 million highlights financial struggles despite a promising 66.9% earnings growth forecast annually. Insider confidence remains unmentioned in recent reports; however, they face higher risk funding due to reliance on external borrowing without customer deposits. Recent production guidance revision and a renewed 20-year lease for the Agbami field signal potential future stability and growth opportunities within the energy sector.

• Get an in-depth perspective on Africa Oil's performance by reading our valuation report here.

• Gain insights into Africa Oil's historical performance by reviewing our past performance report.

Calian Group (TSX:CGY)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Calian Group operates across various sectors including IT and Cyber Solutions, Health, Learning, and Advanced Technologies with a market capitalization of CA$0.83 billion.

Operations: The company generates revenue from four key segments: ITCS, Health, Learning, and Advanced Technologies. As of the most recent data, the gross profit margin has shown an upward trend reaching 33.17%. Operating expenses have been significant with notable allocations towards general and administrative costs as well as sales and marketing.

PE: 33.7x

Calian Group, a smaller Canadian company, is attracting attention with its strategic collaborations and insider confidence. Recent agreements with Walmart Canada and Microsoft highlight Calian's innovative digital health platform and cybersecurity solutions. These partnerships position the company to capture growth in healthcare and cybersecurity markets. Despite relying on external borrowing for funding, Calian's buyback plan suggests management's belief in its potential value. The company's role in Telesat Lightspeed further underscores its capabilities in advanced technology sectors.

• Navigate through the intricacies of Calian Group with our comprehensive valuation report here.

• Understand Calian Group's track record by examining our Past report.

Turning Ideas Into Actions

• Click this link to deep-dive into the 24 companies within our Undervalued TSX Small Caps With Insider Buying screener.
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Looking For Alternative Opportunities?

• 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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