TSX Stocks Estimated To Be Undervalued In September 2024

The Canadian market has seen a 1.4% increase over the last week, with the Financials sector leading at 2.2%, and an impressive 19% rise over the past 12 months. In this favorable environment, identifying undervalued stocks with strong growth potential can be particularly rewarding for investors looking to capitalize on forecasted earnings growth of 15% annually.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
goeasy (TSX:GSY)	CA$185.52	CA$360.43	48.5%
Computer Modelling Group (TSX:CMG)	CA$11.71	CA$22.17	47.2%
Savaria (TSX:SIS)	CA$21.96	CA$41.19	46.7%
Viemed Healthcare (TSX:VMD)	CA$10.45	CA$20.08	48%
Kinaxis (TSX:KXS)	CA$163.91	CA$281.93	41.9%
Endeavour Mining (TSX:EDV)	CA$32.14	CA$55.57	42.2%
Blackline Safety (TSX:BLN)	CA$5.81	CA$11.05	47.4%
NFI Group (TSX:NFI)	CA$18.77	CA$37.35	49.8%
Boyd Group Services (TSX:BYD)	CA$204.39	CA$338.04	39.5%
Opsens (TSX:OPS)	CA$2.90	CA$4.64	37.5%

Click here to see the full list of 26 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

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

Constellation Software (TSX:CSU)

Overview: Constellation Software Inc., with a market cap of CA$90.21 billion, acquires, builds, and manages vertical market software businesses across Canada, the United States, Europe, and internationally.

Operations: Revenue from software and programming amounts to $9.27 billion.

Estimated Discount To Fair Value: 20.8%

Constellation Software Inc. (CA$4396.31) is trading 20.8% below its estimated fair value of CA$5548.27, indicating potential undervaluation based on cash flows. Recent earnings show strong performance with Q2 revenue at US$2.47 billion and net income at US$177 million, both significantly up from last year. Despite high debt levels and recent insider selling, forecasted annual profit growth of 23.55% and a robust Return on Equity of 26.1% in three years highlight solid future prospects amidst ongoing business expansions like Omegro's launch.

• The growth report we've compiled suggests that Constellation Software's future prospects could be on the up.
• Navigate through the intricacies of Constellation Software with our comprehensive financial health report here.

Docebo (TSX:DCBO)

Overview: Docebo Inc. is a learning management software company offering an AI-powered learning platform in North America and internationally, with a market cap of CA$1.79 billion.

Operations: The company generates revenue primarily from its educational software segment, which amounted to $200.24 million.

Estimated Discount To Fair Value: 15.1%

Docebo Inc. (CA$61.3) is trading 15.1% below its fair value of CA$72.19, showing potential undervaluation based on cash flows. Recent earnings reveal strong performance with Q2 revenue at US$53.05 million and net income at US$4.7 million, a turnaround from last year's net loss of US$5.67 million. Forecasts indicate earnings growth of 34% annually over the next three years, outpacing the Canadian market's expected growth rate of 15%.

• In light of our recent growth report, it seems possible that Docebo's financial performance will exceed current levels.
• Unlock comprehensive insights into our analysis of Docebo stock in this financial health report.

Ivanhoe Mines (TSX:IVN)

Overview: Ivanhoe Mines Ltd. engages in the mining, development, and exploration of minerals and precious metals primarily in Africa with a market cap of CA$24.22 billion.

Operations: Ivanhoe Mines Ltd. generates revenue through the mining, development, and exploration of minerals and precious metals primarily in Africa.

Estimated Discount To Fair Value: 20%

Ivanhoe Mines (CA$19.1) is trading 20% below its estimated fair value of CA$23.87, indicating potential undervaluation based on cash flows. The company recently signed an MOU with Zambia's Ministry of Mines to support exploration activities, enhancing its growth prospects. Despite a dip in Q2 net income to US$76.4 million from US$92.04 million last year, earnings are forecasted to grow 71.5% annually, significantly outpacing the Canadian market's expected growth rate of 15%.

• Our comprehensive growth report raises the possibility that Ivanhoe Mines is poised for substantial financial growth.
• Click here to discover the nuances of Ivanhoe Mines with our detailed financial health report.

Turning Ideas Into Actions

• Get an in-depth perspective on all 26 Undervalued TSX Stocks Based On Cash Flows by using our screener here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
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Seeking Other Investments?

• 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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