3 TSX Stocks Estimated To Be Trading At Discounts Between 14.0% And 49.9%

The Canadian market has recently experienced fluctuations, with rising long-term bond yields impacting investor sentiment and sending stocks lower. Despite these challenges, resilient economic activity and strong corporate profit growth suggest potential opportunities for investors seeking undervalued stocks. In this environment, a good stock is often characterized by its ability to withstand higher borrowing costs while maintaining robust fundamentals, making it potentially attractive at current valuations.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
Wesdome Gold Mines (TSX:WDO)	CA$35.84	CA$71.63	50%
SECURE Waste Infrastructure (TSX:SES)	CA$24.18	CA$47.93	49.5%
Pan American Silver (TSX:PAAS)	CA$74.15	CA$136.90	45.8%
NFI Group (TSX:NFI)	CA$22.29	CA$43.29	48.5%
Lumine Group (TSXV:LMN)	CA$24.90	CA$49.56	49.8%
Groupe Dynamite (TSX:GRGD)	CA$64.15	CA$116.25	44.8%
Gildan Activewear (TSX:GIL)	CA$76.00	CA$147.56	48.5%
Endeavour Mining (TSX:EDV)	CA$90.51	CA$180.83	49.9%
Constellation Software (TSX:CSU)	CA$3098.67	CA$5912.91	47.6%
Aritzia (TSX:ATZ)	CA$134.29	CA$248.60	46%

Click here to see the full list of 33 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Endeavour Silver (TSX:EDR)

Overview: Endeavour Silver Corp. is a silver mining company involved in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties across Mexico, Chile, Peru, and the United States with a market cap of CA$4.33 billion.

Operations: The company's revenue is derived from its operations at Kolpa ($209.40 million), Bolanitos ($44.70 million), Terronera ($235.20 million), and Guanaceví ($248 million).

Estimated Discount To Fair Value: 14.0%

Endeavour Silver is trading at CA$14.92, below its estimated future cash flow value of CA$17.35, indicating it may be undervalued based on cash flows. Despite recent operational disruptions due to a blockade at Terronera Mine, the company has resumed operations and secured a US$25 million revolving credit facility for financial flexibility. Earnings are expected to grow significantly over the next three years, outpacing the Canadian market's average growth rate.

• According our earnings growth report, there's an indication that Endeavour Silver might be ready to expand.
• Unlock comprehensive insights into our analysis of Endeavour Silver stock in this financial health report.

Endeavour Mining (TSX:EDV)

Overview: Endeavour Mining plc, along with its subsidiaries, operates as a gold mining company in West Africa and has a market capitalization of CA$21.77 billion.

Operations: The company's revenue is derived from several mining operations in West Africa, specifically the Ity Mine ($1.27 billion), Mana Mine ($656.50 million), Houndé Mine ($871.50 million), Lafigué Mine ($850 million), and Sabodala Massawa Mine ($1.11 billion).

Estimated Discount To Fair Value: 49.9%

Endeavour Mining, trading at CA$90.51, is significantly undervalued relative to its estimated future cash flow value of CA$180.83. Its earnings are projected to grow 18.5% annually, outpacing the Canadian market's 10.8%. Recent buybacks and a dividend increase highlight financial confidence despite an unstable dividend history. The Assafou project in Côte d’Ivoire promises robust growth with potential production of 320koz annually at competitive costs, enhancing Endeavour's long-term cash flow prospects.

• Upon reviewing our latest growth report, Endeavour Mining's projected financial performance appears quite optimistic.
• Delve into the full analysis health report here for a deeper understanding of Endeavour Mining.

SECURE Waste Infrastructure (TSX:SES)

Overview: SECURE Waste Infrastructure Corp. operates in the waste management and energy infrastructure sectors across Canada and the United States, with a market cap of approximately CA$5.20 billion.

Operations: The company's revenue segments include CA$1.31 billion from waste management and CA$235 million from energy infrastructure.

Estimated Discount To Fair Value: 49.5%

SECURE Waste Infrastructure, trading at CA$24.18, is significantly undervalued compared to its estimated future cash flow value of CA$47.93. Earnings are forecast to grow 29.7% annually, surpassing the Canadian market's 10.8%, though revenue growth remains modest at 4.7% per year. Recent earnings showed increased sales and net income for Q2 2026, indicating strong operational performance despite high debt levels and a reliable dividend yield of 1.74%.

• Insights from our recent growth report point to a promising forecast for SECURE Waste Infrastructure's business outlook.
• Dive into the specifics of SECURE Waste Infrastructure here with our thorough financial health report.

Summing It All Up

• Discover the full array of 33 Undervalued TSX Stocks Based On Cash Flows right here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Seeking Other Investments?

• 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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