Calibre Mining and two other TSX stocks investors might consider undervalued

As the first half of 2024 draws to a close, Canadian markets have shown resilience and delivered strong performance, with sectors such as technology and utilities in particular benefiting. Despite a more moderate gain relative to the S&P 500 due to less exposure to high-growth technology stocks, the TSX has maintained steady growth. In this environment, identifying undervalued stocks becomes crucial, as they can present opportunities for investors looking for upside in sectors that are out of the spotlight but are poised to recover or have been overlooked in broader market recoveries.

Top 10 Undervalued Stocks Based on Cash Flow in Canada

Name	Current price	Fair value (est.)	Discount (East)
Trisura Group (TSX:TSU)	CAD$41.71	CAD$80.18	48%
Calibre Mining (TSX:CXB)	CAD$1.94	$3.58 CAD	45.8%
Kinaxis (TSX: KXS)	CAD$160.80	CAD$263.18	38.9%
Viemed Healthcare (TSX: VMD)	$10.45 CAD	$20.08 CAD	48%
Kraken Robotics (TSXV:PNG)	CAD$1.15	CAD$2.21	48%
Endeavour Mining (TSX: EDV)	$30.17 CAD	$52.33 CAD	42.3%
Green Thumb Industries (CNSX: GTII)	$15.71 CAD	$28.03 CAD	43.9%
Jamieson Wellness (TSX: JWEL)	$29.10 CAD	$50.47 CAD	42.3%
Eye Care Kits (TSX:KITS)	$8.85 CAD	$15.45 CAD	42.7%
Capstone Copper (TSX:CS)	$10.23 CAD	$17.50 CAD	41.5%

Click here to see the full list of 26 stocks in our TSX Undervalued Stocks by Cash Flow Analysis tool.

Let’s review some notable picks from our selected stocks.

Preview: Calibre Mining Corp. operates in the exploration, development and exploitation of gold properties in Nicaragua, the United States and Canada with a market capitalization of approximately C$1.43 billion.

Operations: The company generates its revenues mainly from the refined gold segment, totaling CA$566.68 million.

Estimated discount to fair value: 45.8%

Calibre Mining, priced at C$1.81, is significantly undervalued, with its market price 49.8% below its estimated fair value of C$3.61. Despite significant insider selling recently, the company’s financial outlook remains strong, with earnings expected to grow 45.22% per year, outpacing Canadian market forecasts of 14.6%. Revenue growth is also strong at 15.8% per year, versus 7.3% for the market, indicating potential undervaluation by the market despite recent board improvements and index inclusions that could stabilize governance and increase exposure.

Preview: Energy Fuels Inc. operates in the extraction, recovery, recycling and sale of uranium mineral properties in the United States, with a market capitalization of approximately C$1.33 billion.

Operations: The company generates revenues mainly from the metals and mining sector, totaling CA$43.74 million.

Estimated discount to fair value: 24.9%

Energy Fuels, trading at C$8.11, is below its fair value of C$10.93, representing a significant undervaluation based on cash flow. Despite recent index upgrades reflecting a defensive rather than growth orientation, the company’s strategic joint venture in Australia underscores its commitment to growing rare earth element production, a key component of the clean energy sector. With revenue expected to grow 40.8% per year and profitability expected within three years, Energy Fuels combines promising financial growth with strategic operational expansions.

Preview: TerrAscend Corp., with a market capitalization of CA$614.15 million, operates in the cultivation, processing and sale of medical and adult-use cannabis in Canada and the United States.

Operations: The company generates revenues primarily from the cultivation and sale of cannabis, amounting to CA$328.56 million.

Estimated discount to fair value: 5.9%

TerrAscend, priced at C$1.73, is modestly undervalued with a fair value estimate of C$1.95, reflecting a trading position 11.4% below its intrinsic value based on discounted cash flows. The Company’s revenue is expected to grow 11.5% annually, slightly outpacing Canadian market forecasts of 7.3%. While shareholder dilution occurred last year, TerrAscend’s strategic expansion with new dispensaries in Maryland and Michigan strengthens its retail presence and consumer reach, promising improved financial health and market presence over the next three years.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended to be financial advice. They are not a recommendation to buy or sell any stock and do not take into account your objectives or financial situation. Our goal is to provide you with focused, long-term analysis based on fundamental data. Please note that our analysis may not factor in the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned.

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