TSX Titans: Why K92 Mining & Computer Modelling Group Are Hidden Gems in Volatile Markets

In a world of economic uncertainty and market whiplash, Canadian investors are hunting for cash flow machines with asymmetric upside—stocks that combine robust earnings growth, fortress balance sheets, and discounts to fair value. Today, I’m zeroing in on two TSX-listed champions: K92 Mining (KTN.TO) and Computer Modelling Group (CMG.TO). Both offer 49% and 27.5% undervalued growth opportunities, respectively, amid a market average growth rate of just 16.7%. Let’s dissect why these companies are too cheap to ignore.

K92 Mining: A Gold Rush Built on Cash Flow & Expansion

K92 is on fire, with Q2 2025 earnings growth projected at 326.86% year-over-year, driven by the commissioning of its 1.2Mtpa Stage 3 Expansion. This isn’t just a one-quarter sprint—full-year 2025 earnings are expected to rise 58.67%, fueled by:
- Production Surge: 160,000–185,000 gold-equivalent ounces vs. 149,515 in 2024.
- Cost Efficiency: AISC projected at $1,460–$1,560/oz, down from $1,800/oz in 2023.
- Cash Mountain: $60M undrawn credit facilities and a record cash position, ensuring it can weather any gold price dips.

The EPS for Q2 2025 is $0.18 CAD, a massive leap from $0.04 in 2024. With gold prices near $2,000/oz and the Stage 3 ramp-up complete by mid-2025, this stock is a cash flow juggernaut.

Why Buy Now?
- Undervalued by 49%: At current prices, KTN is trading at 5.2x 2025E EV/EBITDA versus peers’ average of 8.5x.
- Asymmetric Risk/Reward: Even if gold dips to $1,700/oz, K92’s low-cost assets remain profitable.

Computer Modelling Group: Software Powerhouse with a 28.9% Earnings CAGR

CMG is a stealth growth story—a $0.88B market cap company with a 28.9% CAGR in earnings through 2025, outpacing Canada’s 12% average. Its 2025 EPS target of $0.32 CAD (up 12% YoY) is backed by:
- Carbon Capture Dominance: Its Focus CCS initiative targets low double-digit revenue growth in this $100B+ sector.
- Acquisition Payoff: Bluware and Sharp Reflections added $17M in annualized revenue, with integration costs now behind them.
- Cash Flow Discipline: Despite Q3 2025 hiccups, free cash flow per share rose 22% QoQ in Q3.

Why the Discount?
- 27.5% Undervalued: Analysts peg CMG’s intrinsic value at $15.60/share, yet it trades at $12.20.
- Margin Turnaround: Post-Q3 Seismic segment costs are now embedded; margins should rebound in 2026.

The Case for Immediate Action

Both stocks are playing offense in a defensive market:
- K92 Mining: Buy now at $6.20/share; my price target is $9.50 by end-2025.
- CMG: Accumulate below $13/share; $15.50 is achievable with execution on CCS and software synergies.

Cramer’s Bottom Line: These are not just growth stocks—they’re value stocks with growth attached. With gold prices holding up and energy transition spending surging, K92 and CMG are the TSX’s best kept secrets. Act now before the crowd catches on.

Risk Alert: Mining and software sectors face commodity price risk and execution delays. Investors should allocate no more than 5% of their portfolio to these names.

Final Call: “This is a ‘buy the dip’ moment for both K92 and CMG. The fundamentals are too strong to ignore.”