Undiscovered Gems In Canada To Watch This August 2024

As the Canadian market navigates a complex landscape marked by shifting Fed policies and economic indicators, investors are increasingly focusing on small-cap stocks for potential growth opportunities. With inflation moving closer to target and central banks poised to ease rates, now is an opportune time to explore undiscovered gems that could offer promising returns amidst these dynamic conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Alvopetro Energy	NA	52.76%	59.10%	★★★★★★
TWC Enterprises	6.74%	10.99%	25.68%	★★★★★★
Taiga Building Products	NA	7.62%	15.46%	★★★★★★
Pizza Pizza Royalty	15.61%	2.83%	3.04%	★★★★★☆
Frontera Energy	28.78%	-0.59%	34.36%	★★★★★☆
Reconnaissance Energy Africa	NA	31.73%	-6.92%	★★★★★☆
Mako Mining	28.08%	39.01%	48.79%	★★★★★☆
Queen's Road Capital Investment	7.20%	22.14%	22.20%	★★★★☆☆
Genesis Land Development	53.32%	25.58%	47.05%	★★★★☆☆
Senvest Capital	54.38%	2.12%	-0.88%	★★★★☆☆

Click here to see the full list of 46 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

North West (TSX:NWC)

Simply Wall St Value Rating: ★★★★★★

Overview: The North West Company Inc., with a market cap of CA$2.13 billion, operates through its subsidiaries to retail food and everyday products and services in rural communities and urban neighborhood markets across northern Canada, rural Alaska, the South Pacific, and the Caribbean.

Operations: Revenue for The North West Company Inc. from retailing food and everyday products and services is CA$2.50 billion.

North West's earnings growth of 15.8% over the past year outpaced the Consumer Retailing industry’s 3.5%, showcasing robust performance. The company’s debt to equity ratio has significantly improved from 95.9% to 42.8% over five years, and its interest payments are well-covered by EBIT at a ratio of 10.9x, indicating financial stability. Trading at 54.2% below estimated fair value, North West also reported Q1 sales of CAD 617M and net income of CAD 25M, reflecting solid profitability trends.

• Unlock comprehensive insights into our analysis of North West stock in this health report.

• Evaluate North West's historical performance by accessing our past performance report.

Osisko Mining (TSX:OSK)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Osisko Mining Inc. is a mineral exploration company focused on acquiring, exploring, and developing precious mineral deposits in Canada, with a market cap of CA$1.16 billion.

Operations: Osisko Mining generates its revenue primarily through the acquisition, exploration, and development of precious mineral deposits in Canada. The company has a market cap of CA$1.16 billion.

Osisko Mining has recently turned profitable, contrasting the broader Metals and Mining industry's 1.5% decline. Trading at a P/E ratio of 5.1x, it offers good value compared to the Canadian market's 13.8x average. Despite its small revenue base under US$1 million (CA$0), OSK boasts more cash than total debt and a rising debt-to-equity ratio now at 13%. The company presented at the Canaccord Genuity Global Metals & Mining Conference in May, highlighting its strategic direction and leadership team.

• Dive into the specifics of Osisko Mining here with our thorough health report.

• Explore historical data to track Osisko Mining's performance over time in our Past section.

Rogers Sugar (TSX:RSI)

Simply Wall St Value Rating: ★★★★★☆

Overview: Rogers Sugar Inc. is involved in refining, packaging, marketing, and distributing sugar and maple products across Canada, the United States, Europe, and internationally with a market cap of CA$732.96 million.

Operations: Rogers Sugar generates revenue primarily from its sugar segment, which brought in CA$944.83 million, and its maple products segment, which contributed CA$215.14 million.

Rogers Sugar, a notable player in the Canadian sugar and maple syrup industry, reported Q2 2024 sales of CAD 300.94 million, up from CAD 272.95 million last year. Net income rose to CAD 13.94 million from CAD 11.06 million previously. Despite high debt with a net debt to equity ratio of 82%, interest payments are well covered by EBIT at four times coverage. The company has also reduced its debt-to-equity ratio from over five years ago (100% to 83%).

• Navigate through the intricacies of Rogers Sugar with our comprehensive health report here.

• Assess Rogers Sugar's past performance with our detailed historical performance reports.

Summing It All Up

• Investigate our full lineup of 46 TSX Undiscovered Gems With Strong Fundamentals right here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com