TSX Stocks That Might Be Priced Below Fair Value In July 2026
As the Canadian market navigates rising oil prices and higher yields, investors are closely watching how these factors might influence inflation and interest rate decisions by central banks. With renewed U.S.–Iran tensions pushing oil prices upward, the focus is on stocks that may be undervalued amid these shifting economic conditions. Identifying stocks priced below their fair value can offer potential opportunities for investors looking to capitalize on market inefficiencies during times of economic uncertainty.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| TFI International (TSX:TFII) | CA$205.82 | CA$387.47 | 46.9% |
| Surge Energy (TSX:SGY) | CA$9.94 | CA$17.85 | 44.3% |
| Medexus Pharmaceuticals (TSX:MDP) | CA$4.96 | CA$9.22 | 46.2% |
| G Mining Ventures (TSX:GMIN) | CA$43.56 | CA$67.42 | 35.4% |
| EQB (TSX:EQB) | CA$140.00 | CA$214.42 | 34.7% |
| Energy Fuels (TSX:EFR) | CA$16.54 | CA$29.27 | 43.5% |
| Endeavour Silver (TSX:EDR) | CA$11.20 | CA$21.95 | 49% |
| Chemtrade Logistics Income Fund (TSX:CHE.UN) | CA$16.49 | CA$30.45 | 45.8% |
| Avino Silver & Gold Mines (TSX:ASM) | CA$8.05 | CA$13.17 | 38.9% |
| Aritzia (TSX:ATZ) | CA$137.80 | CA$254.26 | 45.8% |
Let's review some notable picks from our screened stocks.
FirstService (TSX:FSV)
Overview: FirstService Corporation, with a market cap of CA$8.91 billion, offers residential property management and essential property services to both residential and commercial clients in the United States and Canada.
Operations: The company's revenue is derived from two main segments: First Service Brands, contributing $3.27 billion, and First Service Residential, generating $2.33 billion.
Estimated Discount To Fair Value: 13.3%
FirstService is trading at CA$198.02, below its estimated future cash flow value of CA$228.44, indicating potential undervaluation based on cash flows. Despite high debt levels, earnings are forecast to grow 11.6% annually, outpacing the Canadian market's 10.9%. Recent results showed modest revenue growth and stable earnings per share compared to last year, while strategic initiatives like Resilience First aim to enhance service offerings and risk management capabilities in residential communities.
- Upon reviewing our latest growth report, FirstService's projected financial performance appears quite optimistic.
- Dive into the specifics of FirstService here with our thorough financial health report.
Finning International (TSX:FTT)
Overview: Finning International Inc. is involved in the sale, service, and rental of heavy equipment and engines across Canada, Chile, the United Kingdom, Argentina, and internationally with a market cap of CA$14.06 billion.
Operations: The company's revenue from selling, servicing, and renting heavy equipment, engines, and related products amounts to CA$10.64 billion.
Estimated Discount To Fair Value: 29.2%
Finning International's stock is trading at CA$99.8, below its estimated future cash flow value of CA$140.97, highlighting potential undervaluation. The company's earnings are expected to grow 16.7% annually, surpassing the Canadian market average of 10.9%. Recent earnings reports show increased revenue and net income compared to last year. However, debt coverage by operating cash flow remains a concern despite strategic buybacks reducing outstanding shares by 3.25% for CAD 292.53 million so far this year.
- Our expertly prepared growth report on Finning International implies its future financial outlook may be stronger than recent results.
- Delve into the full analysis health report here for a deeper understanding of Finning International.
Stantec (TSX:STN)
Overview: Stantec Inc. offers professional services in infrastructure and facilities to both private and public sectors across Canada, the United States, and internationally, with a market cap of CA$10.85 billion.
Operations: The company's revenue segments are comprised of CA$1.55 billion from Canada, CA$1.63 billion globally, and CA$3.46 billion from the United States.
Estimated Discount To Fair Value: 33.5%
Stantec is trading at CA$99.62, significantly below its estimated future cash flow value of CA$149.76, indicating potential undervaluation. Its earnings are projected to grow 20% annually, outpacing the Canadian market's average growth rate of 10.9%. Despite a high level of debt, Stantec maintains strong revenue growth forecasts and has secured significant contracts like an $85 million U.S. Army Corps project, enhancing its long-term prospects under new leadership with Susan Reisbord as CEO.
- Insights from our recent growth report point to a promising forecast for Stantec's business outlook.
- Click here and access our complete balance sheet health report to understand the dynamics of Stantec.
Seize The Opportunity
- Investigate our full lineup of 21 Undervalued TSX Stocks Based On Cash Flows right here.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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Looking For Alternative Opportunities?
- 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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