Undervalued TSX Stocks Including Constellation Software And 2 More Based On Analysts’ Estimates

The recent rate cuts by the Federal Reserve and the Bank of Canada have set a new tone for the market, with stocks reaching record highs and indices like the S&P 500 and TSX extending their gains. In this environment, identifying undervalued stocks can be crucial for investors looking to capitalize on potential growth; Constellation Software and two other TSX-listed companies stand out based on analysts' estimates.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
Computer Modelling Group (TSX:CMG)	CA$11.33	CA$22.05	48.6%
Savaria (TSX:SIS)	CA$21.73	CA$41.08	47.1%
Kinaxis (TSX:KXS)	CA$158.25	CA$279.12	43.3%
Calian Group (TSX:CGY)	CA$46.80	CA$73.00	35.9%
Endeavour Mining (TSX:EDV)	CA$33.70	CA$62.23	45.8%
Viemed Healthcare (TSX:VMD)	CA$10.45	CA$20.08	48%
Blackline Safety (TSX:BLN)	CA$5.64	CA$11.04	48.9%
NFI Group (TSX:NFI)	CA$19.02	CA$37.19	48.9%
Boyd Group Services (TSX:BYD)	CA$203.98	CA$335.22	39.2%
Opsens (TSX:OPS)	CA$2.90	CA$4.64	37.5%

Click here to see the full list of 25 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Constellation Software (TSX:CSU)

Overview: Constellation Software Inc. acquires, builds, and manages vertical market software businesses across Canada, the United States, Europe, and internationally with a market cap of CA$92.65 billion.

Operations: Revenue from Software & Programming amounts to $9.27 billion.

Estimated Discount To Fair Value: 19.4%

Constellation Software reported strong earnings for Q2 2024, with revenue at US$2.47 billion and net income at US$177 million, reflecting substantial year-over-year growth. Despite high debt levels, the company's earnings are forecast to grow significantly over the next three years at 23.55% annually, outpacing the Canadian market. Trading at CA$4434.52, it is undervalued based on a discounted cash flow analysis with an estimated fair value of CA$5498.88 per share.

• The growth report we've compiled suggests that Constellation Software's future prospects could be on the up.
• Click to explore a detailed breakdown of our findings in Constellation Software's balance sheet health report.

Ivanhoe Mines (TSX:IVN)

Overview: Ivanhoe Mines Ltd. is involved in mining, developing, and exploring minerals and precious metals mainly in Africa, with a market cap of CA$25.95 billion.

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

Estimated Discount To Fair Value: 13.7%

Ivanhoe Mines is trading at CA$20.31, below its fair value estimate of CA$23.54 based on discounted cash flow analysis. Despite recent shareholder dilution, the company's revenue and earnings are forecast to grow significantly faster than the Canadian market at 83.5% and 68.3% per year, respectively. Recent developments include a memorandum of understanding with Zambia's Ministry of Mines for exploration activities and record copper production at its Kamoa-Kakula complex in August 2024.

• Our growth report here indicates Ivanhoe Mines may be poised for an improving outlook.
• Click here to discover the nuances of Ivanhoe Mines with our detailed financial health report.

OceanaGold (TSX:OGC)

Overview: OceanaGold Corporation, with a market cap of CA$2.76 billion, is a gold and copper producer involved in the exploration, development, and operation of mineral properties in the United States, the Philippines, and New Zealand.

Operations: Revenue from gold and other precious metals amounted to $1.00 billion.

Estimated Discount To Fair Value: 22.9%

OceanaGold Corporation, trading at CA$3.93, is significantly undervalued based on its fair value estimate of CA$5.1 from discounted cash flow analysis. Recent exploration results at the Haile Gold Mine and Wharekirauponga show promising high-grade mineralization, potentially boosting future cash flows. Despite a decline in net income to US$25.4 million for H1 2024, ongoing resource conversion efforts and a share repurchase program underscore the company's commitment to enhancing shareholder value.

• Our expertly prepared growth report on OceanaGold implies its future financial outlook may be stronger than recent results.
• Get an in-depth perspective on OceanaGold's balance sheet by reading our health report here.

Key Takeaways

• Navigate through the entire inventory of 25 Undervalued TSX Stocks Based On Cash Flows 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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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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