TSX Value Opportunities Trading Below Estimated Worth October 2024

As the Canadian market navigates a period of economic uncertainty influenced by shifting U.S. Federal Reserve expectations and global fiscal concerns, investors are keenly observing how these factors might impact local equities. In this environment, identifying undervalued stocks on the TSX can present compelling opportunities for those seeking value investments that may benefit from broader economic trends or market adjustments.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
Computer Modelling Group (TSX:CMG)	CA$12.03	CA$21.85	45%
Aya Gold & Silver (TSX:AYA)	CA$18.28	CA$33.59	45.6%
Kinaxis (TSX:KXS)	CA$157.05	CA$285.99	45.1%
Endeavour Mining (TSX:EDV)	CA$32.81	CA$59.34	44.7%
Viemed Healthcare (TSX:VMD)	CA$10.45	CA$20.08	48%
Sandstorm Gold (TSX:SSL)	CA$8.56	CA$15.31	44.1%
Kraken Robotics (TSXV:PNG)	CA$1.82	CA$3.18	42.7%
Blackline Safety (TSX:BLN)	CA$6.23	CA$10.96	43.2%
Boyd Group Services (TSX:BYD)	CA$212.93	CA$346.68	38.6%
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.

We're going to check out a few of the best picks from our screener tool.

Kinaxis (TSX:KXS)

Overview: Kinaxis Inc. offers cloud-based subscription software for supply chain operations across the United States, Europe, Asia, and Canada with a market cap of CA$4.41 billion.

Operations: The company generates revenue primarily from its Software & Programming segment, which amounts to $457.72 million.

Estimated Discount To Fair Value: 45.1%

Kinaxis is trading significantly below its estimated fair value of C$285.99, presenting a potential opportunity for investors focused on cash flow valuation. Recent strategic moves, including partnerships with ExxonMobil and new client acquisitions like Ono Pharmaceutical and Mahindra & Mahindra, highlight its expanding market presence. Despite activist investor pressure and leadership transitions, Kinaxis's earnings are forecast to grow substantially faster than the Canadian market average, suggesting strong underlying business fundamentals amidst ongoing challenges.

• Insights from our recent growth report point to a promising forecast for Kinaxis' business outlook.
• Click here to discover the nuances of Kinaxis with our detailed financial health report.

Lithium Royalty (TSX:LIRC)

Overview: Lithium Royalty Corp. is a lithium-focused royalty company operating in Australia, Canada, South America, and the United States with a market cap of CA$350 million.

Operations: The company generates revenue of $6.16 million through the acquisition and management of royalty rights and working interests across its operational regions.

Estimated Discount To Fair Value: 30.1%

Lithium Royalty appears undervalued, trading at CA$6.3, below its estimated fair value of CA$9.02. The company's earnings are improving, with a net income of US$0.266 million in Q2 2024 compared to a loss last year. Its revenue is forecasted to grow significantly faster than the Canadian market average over the next few years, driven by its stake in Winsome Resources' Adina Project, which promises substantial royalty payments and cash flow potential amidst low operating costs.

• Our growth report here indicates Lithium Royalty may be poised for an improving outlook.
• Delve into the full analysis health report here for a deeper understanding of Lithium Royalty.

Kraken Robotics (TSXV:PNG)

Overview: Kraken Robotics Inc. is a marine technology company that designs, manufactures, and sells sonar and optical sensors, batteries, and underwater robotic equipment for unmanned underwater vehicles used in military and commercial applications globally, with a market cap of CA$369.84 million.

Operations: The company's revenue is derived from two main segments: Products, which generated CA$72.06 million, and Services, contributing CA$19.92 million.

Estimated Discount To Fair Value: 42.7%

Kraken Robotics is trading at CA$1.82, significantly below its estimated fair value of CA$3.18, reflecting potential undervaluation based on cash flows. Recent orders totaling $16 million for SeaPower batteries and MINSAS systems enhance revenue prospects, while a CAD 45 million equity offering strengthens its financial position. Kraken's earnings are expected to grow significantly faster than the Canadian market average over the next few years, supported by strategic alliances and expanding international defense contracts.

• Our comprehensive growth report raises the possibility that Kraken Robotics is poised for substantial financial growth.
• Dive into the specifics of Kraken Robotics here with our thorough financial health report.

Make It Happen

• Discover the full array of 26 Undervalued TSX Stocks Based On Cash Flows right here.
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Contemplating Other Strategies?

• 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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