3 Canadian Undervalued Stocks With Earnings Growth Up To 17%

US inflation data on November 10 will help set the tone for global interest rates, and that ripples straight into Canadian shares that throw off reliable cash and keep debt in check. When borrowing costs stay elevated, investors often pay closer attention to balance sheet strength and predictable cash flow. This article highlights three Canadian companies that score well on both, yet still trade at what looks like a discount.

The three stocks below are a sample pulled from a wider high quality undervalued screen that also surfaced 1 more company with equally compelling balance sheet strength and cash generation that this article will not cover in detail. To see the full universe and analyze which ideas best fit your portfolio, head straight into the High Quality Undervalued Stocks screener.

Mullen Group (TSX:MTL)

Overview: Mullen Group is a Canadian trucking and logistics provider, with a strong logistics and warehousing arm that links freight transport, storage, e-commerce fulfillment, and tech-driven management systems into scalable cash-generating services.

Operations: Mullen Group generates about CA$863.8 million from Logistics & Warehousing, CA$804.8 million from Less-Than-Truckload, CA$436.2 million from Specialized & Industrial Services, and CA$248.8 million from U.S. & International Logistics, with roughly CA$2.1b earned in Canada and CA$248.8 million in the United States.

Market Cap: CA$2.8b

Mullen Group catches the eye in this screener because its logistics and warehousing engine links strong cash generation with a balance sheet that supports growth without losing sight of risk.

"Recent large acquisitions (notably Cole Group) are driving significant incremental revenue growth, and management expects these deals, as full-year contributions are realized, to push consolidated revenue meaningfully higher, setting up for further top-line growth as trade normalization and cross-border complexity drive more demand for third-party logistics and customs expertise."

What really matters now is how one quiet pressure on margins and pricing power resolves as freight demand and competition shift.

If you want to see how that margin pressure could flip into an advantage, read the full narrative for Mullen Group for what might be accelerating beneath the surface.

Groupe Dynamite (TSX:GRGD)

Overview: Groupe Dynamite is a women’s fashion retailer whose Dynamite and Garage banners generate cash flow through stores and e-commerce across key markets.

Operations: Groupe Dynamite reports CA$1.5b from retail apparel, with roughly CA$578.8 million from Canada and CA$902.4 million from the United States.

Market Cap: CA$6.3b

Groupe Dynamite fits the High Quality Undervalued Stocks theme because its core fashion retail engine converts store traffic and online demand into cash that supports its balance sheet.

"Rapid expansion in the United States and early traction in the United Kingdom, including Oxford Street and other prime centers, increases Groupe Dynamite’s exposure to higher income shoppers and tourists, which can influence revenue and sales per square foot."

The key factor to watch is how one emerging pattern in customer behavior affects pricing, markdown discipline, and long-run margins.

That shift in shopper behaviour could be masking the real story. Read the full narrative for Groupe Dynamite to see how Groupe Dynamite’s model could be quietly accelerating.

Stantec (TSX:STN)

Overview: Stantec is a global engineering and design firm that earns steady, contract-based fees from infrastructure, water, and building projects, supporting cash flows and a resilient balance sheet.

Operations: Stantec generates about CA$3.6b in the United States, CA$1.6b in Canada, and CA$1.7b across global operations, with diversified international exposure.

Market Cap: CA$11.3b

Stantec appears in this High Quality Undervalued Stocks screen because its long running infrastructure and water programs can convert a deep backlog into steady cash. This can help turn a value gap into a more interesting opportunity if and when sentiment changes.

"Recent large acquisitions such as Page, Cosgroves and Ryan Hanley have significantly expanded Stantec's presence in the U.S., New Zealand and Ireland. With Page reported as performing strongly and Niche in Australia added in mid 2026, the larger platform can keep widening the revenue base and support earnings as integration benefits continue to flow through to results."

The key question from here is how a relatively quiet shift in project mix affects margins and the pace of cash generation.

As that mix shifts, read the full narrative for Stantec to see how Stantec’s project pipeline, cash generation and risks could be quietly decoupling from headline sentiment.

Seeking Fresh Alternatives Before They Fly

Fresh ideas often move first. Breakout stories gain momentum, then the best entry points vanish as prices start flying. Review these focused stock lists before the crowd catches up and consider whether they fit your strategy.

• Target dependable cash generators with strong cushions and scan a curated list of solid balance sheet and fundamentals (6 results) that can help you avoid fragile balance sheets while it still matters.
• Spot potential breakout trends early and review a pre-filtered set of 8 high quality undiscovered gems that remain under the radar for now but may not stay quiet for long.
• Ride powerful spending themes and assess a focused group of 41 power grid technology and infrastructure stocks while infrastructure momentum builds and the most compelling entry points are still dropping into view.

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