In a Canadian market that has demonstrated remarkable resilience amidst global geopolitical tensions and U.S. policy shifts, fundamentals such as low energy prices and moderating inflation continue to bolster stability. As the TSX reaches record highs, investors may find opportunities in stocks that appear undervalued relative to their intrinsic value estimates, driven by solid growth and broadening earnings.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name Current Price Fair Value (Est) Discount (Est) Topicus.com (TSXV:TOI) CA$113.78 CA$223.80 49.2% Lithium Royalty (TSX:LIRC) CA$10.29 CA$18.62 44.7% Kits Eyecare (TSX:KITS) CA$21.44 CA$38.53 44.4% G Mining Ventures (TSX:GMIN) CA$40.93 CA$69.61 41.2% First Majestic Silver (TSX:AG) CA$29.90 CA$55.95 46.6% EQB (TSX:EQB) CA$102.10 CA$187.32 45.5% Endeavour Mining (TSX:EDV) CA$74.67 CA$135.95 45.1% Dexterra Group (TSX:DXT) CA$13.46 CA$26.01 48.3% Black Diamond Group (TSX:BDI) CA$16.68 CA$33.30 49.9% Almonty Industries (TSX:AII) CA$12.09 CA$22.17 45.5%

Click here to see the full list of 23 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

First Majestic Silver

Overview: First Majestic Silver Corp. focuses on acquiring, exploring, developing, and producing mineral properties in North America and has a market cap of CA$14.69 billion.

Operations: The company's revenue segments include $252.53 million from San Dimas in Mexico, $315.83 million from Santa Elena in Mexico, $84.90 million from La Encantada in Mexico, and $35.80 million from First Mint in the United States.

Estimated Discount To Fair Value: 46.6%

First Majestic Silver appears significantly undervalued based on discounted cash flow analysis, trading at CA$29.9 against an estimated fair value of CA$55.95. The company has shown robust production growth, with a 77% increase in silver output in Q4 2025 compared to the previous year. Despite past shareholder dilution and insider selling, projected revenue and earnings growth rates of 76.2% and 61.7% annually outpace the Canadian market averages, enhancing its investment appeal based on cash flows.

The analysis detailed in our First Majestic Silver growth report hints at robust future financial performance. Delve into the full analysis health report here for a deeper understanding of First Majestic Silver.TSX:AG Discounted Cash Flow as at Jan 2026

Chemtrade Logistics Income Fund

Overview: Chemtrade Logistics Income Fund provides industrial chemicals and services across Canada, the United States, and South America, with a market cap of CA$1.71 billion.

Operations: The company generates revenue through its Electrochemicals segment, contributing CA$783.51 million, and its Sulphur and Water Chemicals segment, which accounts for CA$1.17 billion.

Story Continues

Estimated Discount To Fair Value: 30.7%

Chemtrade Logistics Income Fund trades at CA$14.94, significantly below its estimated fair value of CA$21.55, suggesting undervaluation based on cash flows. Analysts expect earnings to grow 20.8% annually, outpacing the Canadian market's 12.2%. Despite a high debt level and an unstable dividend track record, recent increases in monthly distributions reflect improved cash flow management. The company completed a share buyback program worth CA$13.07 million, enhancing shareholder value amidst stable revenue growth forecasts.

According our earnings growth report, there's an indication that Chemtrade Logistics Income Fund might be ready to expand. Navigate through the intricacies of Chemtrade Logistics Income Fund with our comprehensive financial health report here.TSX:CHE.UN Discounted Cash Flow as at Jan 2026

New Found Gold

Overview: New Found Gold Corp. is a mineral exploration company focused on identifying, evaluating, acquiring, and exploring mineral properties in Newfoundland and Labrador, Canada, with a market cap of CA$740.28 million.

Operations: New Found Gold Corp. does not currently report any revenue segments in millions of CA$.

Estimated Discount To Fair Value: 19.3%

New Found Gold, trading at CA$4.09, is undervalued relative to its fair value estimate of CA$5.07. The company's revenue is projected to grow significantly faster than the Canadian market, with expectations of becoming profitable within three years. Recent drilling results from the Queensway Gold Project highlight promising exploration potential, although past shareholder dilution and minimal current revenue are concerns. The acquisition of additional mineral claims expands their project footprint by 31%, enhancing future prospects.

Our earnings growth report unveils the potential for significant increases in New Found Gold's future results. Take a closer look at New Found Gold's balance sheet health here in our report.TSXV:NFG Discounted Cash Flow as at Jan 2026

Summing It All Up

Gain an insight into the universe of 23 Undervalued TSX Stocks Based On Cash Flows by clicking here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

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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.

Companies discussed in this article include TSX:AG TSX:CHE.UN and TSXV:NFG.

This article was originally published by Simply Wall St.

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