As the Canadian market navigates rising oil prices and higher yields, investors are closely watching how these factors might influence inflation and central bank policies. In this environment, identifying stocks that may be undervalued can offer opportunities for those seeking to capitalize on intrinsic value estimates.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Stantec (TSX:STN) | CA$97.19 | CA$153.41 | 36.6% |
| SSR Mining (TSX:SSRM) | CA$37.35 | CA$73.92 | 49.5% |
| Medexus Pharmaceuticals (TSX:MDP) | CA$4.88 | CA$9.14 | 46.6% |
| Kraken Robotics (TSXV:PNG) | CA$5.80 | CA$8.99 | 35.4% |
| G Mining Ventures (TSX:GMIN) | CA$42.87 | CA$66.90 | 35.9% |
| EQB (TSX:EQB) | CA$140.27 | CA$214.58 | 34.6% |
| Energy Fuels (TSX:EFR) | CA$16.37 | CA$29.02 | 43.6% |
| Chemtrade Logistics Income Fund (TSX:CHE.UN) | CA$16.54 | CA$30.51 | 45.8% |
| Avino Silver & Gold Mines (TSX:ASM) | CA$7.73 | CA$13.07 | 40.9% |
| Aritzia (TSX:ATZ) | CA$138.52 | CA$251.41 | 44.9% |
We're going to check out a few of the best picks from our screener tool.
Celestica (TSX:CLS)
Overview: Celestica Inc., along with its subsidiaries, offers supply chain solutions across Asia, North America, and globally, with a market cap of CA$53.05 billion.
Operations: The company's revenue is derived from two main segments: Advanced Technology Solutions (ATS), contributing $3.27 billion, and Connectivity & Cloud Solutions (CCS), accounting for $12.32 billion.
Estimated Discount To Fair Value: 33.2%
Celestica Inc. appears undervalued based on cash flows, trading 33.2% below estimated fair value and more than 20% below future cash flow value. Recent earnings show substantial growth, with Q2 net income at US$368.8 million compared to US$211 million a year ago, and annual revenue forecasted to reach US$20.5 billion for 2026. Analysts expect earnings to grow significantly by over 32% annually, outpacing the Canadian market's average growth rate.
- In light of our recent growth report, it seems possible that Celestica's financial performance will exceed current levels.
- Get an in-depth perspective on Celestica's balance sheet by reading our health report here.
EQB (TSX:EQB)
Overview: EQB Inc., operating through its subsidiary Equitable Bank, offers personal and commercial banking services to retail and commercial clients in Canada, with a market cap of CA$5.97 billion.
Operations: The company's revenue primarily comes from its banking segment, which generated CA$1.06 billion.
Estimated Discount To Fair Value: 34.6%
EQB is trading at CA$140.27, significantly undervalued compared to its estimated future cash flow value of CA$214.58, offering potential for investors focused on cash flows. Forecasted earnings growth of 37% annually surpasses the Canadian market average, though the company faces challenges with high bad loans at 2.3%. Recent strategic moves include acquiring President's Choice Bank and launching a business card aimed at small businesses, enhancing their financial product offerings despite insider selling concerns.
- Our growth report here indicates EQB may be poised for an improving outlook.
- Dive into the specifics of EQB here with our thorough financial health report.
GFL Environmental (TSX:GFL)
Overview: GFL Environmental Inc. offers non-hazardous solid waste management services across Canada and the United States, with a market cap of CA$20.98 billion.
Operations: The company's revenue segments include CA$5.34 billion from solid waste services in the USA and CA$2.50 billion from similar operations in Canada.
Estimated Discount To Fair Value: 19.2%
GFL Environmental is trading at CA$58.13, below its estimated future cash flow value of CA$71.95, suggesting potential undervaluation. Despite a recent net loss of CAD 159.8 million in Q2 2026, the company raised its full-year revenue guidance to approximately CAD 7.51 billion to CAD 7.53 billion and expects profitability within three years with forecasted earnings growth of over 100% annually. Strategic developments include joint RNG projects with OPAL Fuels and share buybacks totaling CAD 15.71 million.
- The analysis detailed in our GFL Environmental growth report hints at robust future financial performance.
- Click to explore a detailed breakdown of our findings in GFL Environmental's balance sheet health report.
Taking Advantage
- Reveal the 23 hidden gems among our Undervalued TSX Stocks Based On Cash Flows screener with a single click here.
- Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
- Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.
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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