Aecon Group And 2 Other Stocks On The TSX That May Be Trading Below Fair Value Estimates

As the Canadian market continues to navigate through a landscape of easing trade tensions and cautious monetary policy adjustments, investors are keeping a close eye on opportunities that may arise from these evolving conditions. In this context, identifying stocks that are potentially undervalued can be particularly appealing, as they offer the possibility of growth in an environment where interest rates have been adjusted to more neutral levels by central banks.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
Vitalhub (TSX:VHI)	CA$10.96	CA$18.88	41.9%
Savaria (TSX:SIS)	CA$22.01	CA$40.66	45.9%
Neo Performance Materials (TSX:NEO)	CA$19.34	CA$34.57	44.1%
Magellan Aerospace (TSX:MAL)	CA$17.23	CA$33.95	49.2%
Kinaxis (TSX:KXS)	CA$169.84	CA$274.71	38.2%
Haivision Systems (TSX:HAI)	CA$5.13	CA$8.24	37.7%
GURU Organic Energy (TSX:GURU)	CA$5.66	CA$8.97	36.9%
Bird Construction (TSX:BDT)	CA$30.12	CA$56.61	46.8%
Artemis Gold (TSXV:ARTG)	CA$34.19	CA$63.57	46.2%
Americas Gold and Silver (TSX:USA)	CA$5.58	CA$9.77	42.9%

Click here to see the full list of 24 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

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

Aecon Group (TSX:ARE)

Overview: Aecon Group Inc. is a construction and infrastructure development company serving private and public sector clients in Canada, the United States, and internationally, with a market capitalization of CA$1.96 billion.

Operations: Aecon Group Inc.'s revenue is primarily derived from its Construction segment, which accounts for CA$5.14 billion, while its Concessions segment contributes CA$9.99 million.

Estimated Discount To Fair Value: 19.8%

Aecon Group's recent earnings report shows a robust sales increase to C$1.53 billion for Q3 2025, although net income declined to C$40 million. The company anticipates strong revenue growth due to strategic acquisitions and a record backlog of C$10.8 billion. Aecon is trading at 19.8% below its estimated fair value of C$38.56, indicating potential undervaluation based on cash flows despite lower-than-ideal dividend coverage and return on equity forecasts.

• Insights from our recent growth report point to a promising forecast for Aecon Group's business outlook.
• Take a closer look at Aecon Group's balance sheet health here in our report.

Endeavour Mining (TSX:EDV)

Overview: Endeavour Mining plc is a multi-asset gold producer operating in West Africa, with a market capitalization of approximately CA$13.56 billion.

Operations: The company's revenue is derived from its operations in West Africa, with the Ity Mine generating $969.60 million, Mana Mine contributing $460.30 million, Houndé Mine producing $980.10 million, and Sabodala Massawa Mine adding $736.80 million.

Estimated Discount To Fair Value: 20.8%

Endeavour Mining is trading at CA$56.19, 20.8% below its estimated fair value of CA$70.99, suggesting undervaluation based on cash flows. The company's earnings are expected to grow significantly at 28.1% annually, outpacing the Canadian market's 11.9%. Despite a high forecasted return on equity of 36.3%, the dividend yield of 3.09% lacks coverage by earnings, posing sustainability concerns amidst moderate revenue growth projections of 5.4%.

• Our expertly prepared growth report on Endeavour Mining implies its future financial outlook may be stronger than recent results.
• Click here and access our complete balance sheet health report to understand the dynamics of Endeavour Mining.

Topicus.com (TSXV:TOI)

Overview: Topicus.com Inc. operates by providing vertical market software and platforms in the Netherlands and internationally, with a market cap of CA$11.50 billion.

Operations: The company generates revenue of €1.40 billion from its software and programming segment.

Estimated Discount To Fair Value: 30.7%

Topicus.com, trading at CA$138, is undervalued based on cash flows with a fair value estimate of CA$198.99. Its earnings are projected to grow significantly at 32.6% annually, surpassing the Canadian market's growth rate of 11.9%. However, substantial insider selling in the past quarter could raise concerns for potential investors despite analysts' consensus that the stock price may rise by 51.3%.

• The analysis detailed in our Topicus.com growth report hints at robust future financial performance.
• Navigate through the intricacies of Topicus.com with our comprehensive financial health report here.

Next Steps

• Delve into our full catalog of 24 Undervalued TSX Stocks Based On Cash Flows here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• 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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