Three Undiscovered Gems In Canada To Enhance Your Portfolio

The Canadian market has shown impressive resilience, rising 1.1% over the last week with the Materials sector surging by 3.8%, and an overall annual growth of 21%. In light of these promising conditions and forecasted earnings growth of 15% annually, identifying lesser-known stocks with strong fundamentals can be a strategic move to enhance your portfolio.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
TWC Enterprises	6.74%	10.99%	25.68%	★★★★★★
Reconnaissance Energy Africa	NA	15.28%	7.58%	★★★★★★
Taiga Building Products	NA	6.05%	10.50%	★★★★★★
Tornado Global Hydrovacs	14.62%	24.52%	64.90%	★★★★★☆
Westshore Terminals Investment	NA	-2.67%	-9.77%	★★★★★☆
Grown Rogue International	24.92%	43.35%	67.95%	★★★★★☆
Mako Mining	22.90%	38.12%	54.79%	★★★★★☆
Pizza Pizza Royalty	15.66%	3.64%	3.95%	★★★★☆☆
Queen's Road Capital Investment	7.20%	22.14%	22.20%	★★★★☆☆
Genesis Land Development	53.32%	25.58%	47.05%	★★★★☆☆

Click here to see the full list of 47 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Silvercorp Metals (TSX:SVM)

Simply Wall St Value Rating: ★★★★★★

Overview: Silvercorp Metals Inc., with a market cap of CA$1.29 billion, is involved in the acquisition, exploration, development, and mining of mineral properties through its subsidiaries.

Operations: Silvercorp Metals generates revenue primarily from its mining operations in Guangdong ($27.35 million) and Henan Luoning ($200 million). The company's net profit margin is a key financial metric to consider when evaluating its profitability.

Silvercorp Metals, a Canadian mining company, is trading at 89.7% below its estimated fair value and has shown robust earnings growth of 149.4% over the past year, outpacing the industry average of 1.2%. The firm reported Q1 revenue of US$72 million and net income of US$21.94 million, both significantly up from last year’s figures. Recently, Silvercorp announced a share repurchase program to buy back up to 8.67 million shares by September 2025, aiming to enhance shareholder value.

• Unlock comprehensive insights into our analysis of Silvercorp Metals stock in this health report.

• Examine Silvercorp Metals' past performance report to understand how it has performed in the past.

Standard Lithium (TSXV:SLI)

Simply Wall St Value Rating: ★★★★★★

Overview: Standard Lithium Ltd. explores, develops, and processes lithium brine properties in the United States with a market cap of CA$372.43 million.

Operations: Standard Lithium Ltd. does not currently report any revenue segments in its financial statements.

Standard Lithium has turned profitable this year, reporting net income of CA$147.45 million, a significant improvement from last year's net loss of CA$41.99 million. The company’s price-to-earnings ratio stands at 2.6x, well below the Canadian market average of 15.3x, indicating potential value for investors. Despite its volatility over the past three months and recent insider selling, Standard Lithium's debt-free status and strategic partnerships like the USD 225 million DOE grant highlight its growth prospects in the lithium sector.

• Click to explore a detailed breakdown of our findings in Standard Lithium's health report.

• Gain insights into Standard Lithium's past trends and performance with our Past report.

Westshore Terminals Investment (TSX:WTE)

Simply Wall St Value Rating: ★★★★★☆

Overview: Westshore Terminals Investment Corporation operates a coal storage and unloading/loading terminal at Roberts Bank, British Columbia, with a market cap of CA$1.52 billion.

Operations: Westshore Terminals Investment Corporation generates revenue primarily from its transportation infrastructure segment, which amounted to CA$379.34 million. The company has a market cap of CA$1.52 billion.

Westshore Terminals Investment Corporation, a Canadian infrastructure player, has seen robust earnings growth of 36.4% over the past year, outperforming the industry average of 10.1%. With a price-to-earnings ratio of 14.5x below the Canadian market's 15.3x, it offers good value. Despite being debt-free for five years and maintaining high-quality earnings, its recent removal from multiple S&P/TSX indices could impact investor sentiment. The company also repurchased 675,009 shares for CAD$15.56 million recently.

• Navigate through the intricacies of Westshore Terminals Investment with our comprehensive health report here.

• Gain insights into Westshore Terminals Investment's historical performance by reviewing our past performance report.

Where To Now?

• Navigate through the entire inventory of 47 TSX Undiscovered Gems With Strong Fundamentals here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Interested In Other Possibilities?

• 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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