Over the last 7 days, the Canadian market has remained flat, but it has seen a substantial 19% increase over the past year with earnings forecasted to grow by 15% annually. In this promising environment, identifying undiscovered gems that align with these growth trends can be a rewarding strategy for investors looking to capitalize on emerging opportunities.
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% | |
| Amerigo Resources | 12.87% | 7.49% | 12.97% | |
| Tenaz Energy | NA | 33.64% | 50.62% | |
| Mako Mining | 22.90% | 38.12% | 54.79% | |
| Pizza Pizza Royalty | 15.66% | 3.64% | 3.95% | |
| Firm Capital Mortgage Investment | 57.73% | 9.38% | 5.91% | |
| 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 43 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.
We'll examine a selection from our screener results.
Simply Wall St Value Rating:
Overview: Freehold Royalties Ltd. focuses on acquiring and managing royalty interests in crude oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States, with a market cap of CA$2.19 billion.
Operations: Freehold Royalties Ltd. generates revenue primarily from its oil and gas exploration and production segment, which amounted to CA$323.04 million. The company has a market cap of CA$2.19 billion.
Freehold Royalties, a small-cap player in the Canadian market, has seen its debt to equity ratio rise from 15.1% to 24.7% over five years but maintains satisfactory net debt levels at 24.6%. Interest payments are well covered by EBIT with a 15.3x coverage ratio. Trading at nearly 57% below estimated fair value, Freehold also reported Q2 net income of CAD 39.3 million and declared dividends of CAD 0.09 per share for upcoming months.
TSX:FRU Earnings and Revenue Growth as at Sep 2024
Simply Wall St Value Rating:
Overview: Hammond Power Solutions Inc., along with its subsidiaries, specializes in designing, manufacturing, and selling various transformers across Canada, the United States, Mexico, and India with a market cap of CA$1.71 billion.
Operations: HPS generates revenue primarily from the manufacture and sale of transformers, totaling CA$754.37 million.
Hammond Power Solutions has shown impressive growth, with earnings increasing by 12.3% over the past year, outpacing the Electrical industry’s 6.5%. The company reduced its debt to equity ratio from 27.7% to 5% in five years and trades at a value of CAD$197.21 million in Q2 sales compared to CAD$172.45 million last year. Additionally, net income rose to CAD$23.59 million from CAD$13.33 million, reflecting strong financial health and potential for future growth.
TSX:HPS.A Debt to Equity as at Sep 2024
Simply Wall St Value Rating:
Overview: Silvercorp Metals Inc., with a market cap of CA$1.23 billion, is involved in the acquisition, exploration, development, and mining of mineral properties through its subsidiaries.
Operations: Silvercorp Metals Inc. generates revenue primarily from its mining operations in Guangdong ($27.35 million) and Henan Luoning ($200 million). The company's net profit margin stands at 14%.
Silvercorp Metals, a notable player in the mining sector, reported impressive earnings growth of 149.4% over the past year, significantly outpacing the industry average of 1.2%. The company is debt-free and trading at 90.5% below its estimated fair value, making it an attractive proposition for investors. Recently, Silvercorp announced a share repurchase program to buy back up to 8.67 million shares by September 2025, aiming to enhance shareholder value and reduce outstanding shares from its current total of approximately 216 million.
TSX:SVM Earnings and Revenue Growth as at Sep 2024