Tidewater Midstream and Infrastructure and Gran Colombia Gold are two of the companies on my list that I consider are undervalued. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.
Tidewater Midstream and Infrastructure Ltd. (TSX:TWM)
Tidewater Midstream and Infrastructure Ltd. Tidewater Midstream and Infrastructure was started in 2015 and has a market cap of CAD CA$457.43M, putting it in the small-cap category.
TWM’s shares are now trading at -49% beneath its actual worth of $2.74, at a price of CA$1.39, according to my discounted cash flow model. The divergence signals an opportunity to buy TWM shares at a low price. TWM is also strong financially, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Continue research on Tidewater Midstream and Infrastructure here.
Gran Colombia Gold Corp. (TSX:GCM)
Gran Colombia Gold Corp., together with its subsidiaries, operates as a gold and silver exploration, development, and production company in Colombia. The company currently employs 2831 people and with the stock’s market cap sitting at CAD CA$56.58M, it comes under the small-cap group.
GCM’s shares are currently trading at -49% lower than its true level of $4.65, at the market price of CA$2.39, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Moreover, GCM’s PE ratio is currently around 1.02x relative to its Metals and Mining peer level of, 10.05x meaning that relative to its peers, GCM’s stock can be bought at a cheaper price. GCM is also robust in terms of financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. More on Gran Colombia Gold here.
High Arctic Energy Services Inc (TSX:HWO)
High Arctic Energy Services Inc. provides oilfield services in Canada and Papua New Guinea. Formed in 1993, and currently lead by J. Bailey, the company size now stands at 711 people and with the company’s market cap sitting at CAD CA$199.98M, it falls under the small-cap category.
HWO’s shares are currently trading at -47% under its real value of $7.09, at the market price of CA$3.75, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Also, HWO’s PE ratio stands at 9.84x relative to its Energy Services peer level of, 23.31x meaning that relative to other stocks in the industry, HWO’s shares can be purchased for a lower price. HWO is also a financially healthy company, with current assets covering liabilities in the near term and over the long run. HWO also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on High Arctic Energy Services here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.