Identifying Undervalued Stocks Amidst Market Volatility: Top 10 Canadian Options

The article presents a list of 10 undervalued stocks on the TSX based on cash flows. The stocks include West Fraser Timber, Trigon Metals, TerraVest Industries, Savaria, Magellan Aerospace, K92 Mining, Ivanhoe Mines, Groupe Dynamite, goeasy, and Allied Gold. The estimated discount to fair value ranges from 32.3% to 49.6%. The article highlights several standout options, including First Majestic Silver, which is trading at a 32.3% discount to its estimated fair value of CA$18.09. The company has reported a significant turnaround in earnings and is expected to grow faster than the Canadian market average over the next few years.

As the Canadian market continues to navigate an environment of improving labor productivity and contained unit labor costs, investors are keenly focusing on potential value opportunities. With corporate earnings growth showing resilience and inflation remaining relatively stable, identifying undervalued stocks becomes crucial for those looking to capitalize on these favorable economic conditions. This article presents a list of 10 undervalued TSX stocks based on cash flows, including West Fraser Timber, Trigon Metals, TerraVest Industries, Savaria, Magellan Aerospace, K92 Mining, Ivanhoe Mines, Groupe Dynamite, goeasy, and Allied Gold. The estimated discount to fair value ranges from 32.3% to 49.6%.

Allied Gold stands out as one of the most undervalued stocks, trading at CA$16.39 and significantly below its estimated fair value of CA$28.92. Despite a net loss of US$25.41 million in Q2 2025, the company reported sales growth to US$251.98 million from US$195.61 million a year ago and forecasts robust annual revenue growth of 22.4%. While shareholders faced substantial dilution recently, Allied Gold is expected to become profitable within three years, outpacing average market growth rates in Canada [2].

First Majestic Silver Corp (NYSE:AG) is another notable undervalued stock, trading at a 32.3% discount to its estimated fair value of CA$18.09. The company reported a record quarterly revenue of $268 million, up 94% year over year, and silver production increased by 76% year over year, reaching 3.7 million ounces. First Majestic Silver Corp (NYSE:AG) achieved record EBITDA of $120 million and cash flows of about $150 million. The integration of Gatos has been smooth, with operational improvements and synergies identified across the portfolio. Despite a reported revenue miss due to currency conversion errors in some reports and increased costs at Sandimas, the company has a strong cash position with $510 million in the bank, contributing to a robust balance sheet [3].

These stocks offer promising investment opportunities for those seeking undervalued stocks with strong growth potential. However, investors should conduct thorough research and consider their risk tolerance before making any investment decisions.

References:
[1] https://partner.cryptopolitan.com/top-undervalued-crypto-under-1-ready-to-beat-cardano-ada-in-2025/
[2] https://finance.yahoo.com/news/tsx-value-picks-including-allied-123755900.html
[3] https://ca.finance.yahoo.com/news/first-majestic-silver-corp-ag-190308894.html