As the Canadian market navigates through a period of subdued short-term growth, influenced by slower consumer spending and population growth, investors are keeping a close eye on fiscal stimulus and interest-rate cuts expected to gain traction in 2026. In this environment, identifying stocks that may be trading below their estimated value could present strategic opportunities for those looking to capitalize on potential market improvements.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name Current Price Fair Value (Est) Discount (Est) Topicus.com (TSXV:TOI) CA$127.60 CA$228.29 44.1% Northland Power (TSX:NPI) CA$17.02 CA$31.72 46.3% Neo Performance Materials (TSX:NEO) CA$16.15 CA$31.84 49.3% Lithium Royalty (TSX:LIRC) CA$6.55 CA$11.69 44% Haivision Systems (TSX:HAI) CA$5.04 CA$8.73 42.3% First Majestic Silver (TSX:AG) CA$15.65 CA$28.78 45.6% Exchange Income (TSX:EIF) CA$76.63 CA$130.86 41.4% Constellation Software (TSX:CSU) CA$3291.41 CA$5993.19 45.1% Birchcliff Energy (TSX:BIR) CA$7.24 CA$13.73 47.3% 5N Plus (TSX:VNP) CA$18.40 CA$31.64 41.9%

Click here to see the full list of 27 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Colliers International Group

Overview: Colliers International Group Inc. offers commercial real estate services to corporate and institutional clients across various regions including the United States, Canada, Europe, and Asia, with a market cap of CA$10.07 billion.

Operations: The company's revenue is primarily derived from Real Estate Services ($3.20 billion), Engineering ($1.72 billion), and Investment Management ($525.24 million).

Estimated Discount To Fair Value: 23.2%

Colliers International Group is trading at CA$197.76, below its estimated fair value of CA$257.5, indicating it may be undervalued based on cash flows. Earnings are expected to grow significantly at 28.7% annually over the next three years, outpacing the Canadian market's growth rate of 11.5%. However, despite positive revenue forecasts and strategic leadership changes aimed at boosting growth in key markets like the U.S. Northeast, debt coverage by operating cash flow remains a concern.

Our expertly prepared growth report on Colliers International Group implies its future financial outlook may be stronger than recent results. Click to explore a detailed breakdown of our findings in Colliers International Group's balance sheet health report.TSX:CIGI Discounted Cash Flow as at Nov 2025

Kinaxis

Overview: Kinaxis Inc. offers cloud-based subscription software for supply chain operations across the United States, Europe, Asia, and Canada, with a market cap of CA$4.95 billion.

Story Continues

Operations: The company generates revenue primarily from its supply chain management software and solutions, amounting to $527.73 million.

Estimated Discount To Fair Value: 40%

Kinaxis, trading at CA$176.3, is undervalued against its fair value of CA$294.04 and shows potential based on cash flows. Its earnings grew by 71% last year and are projected to rise significantly at 30.8% annually over the next three years, surpassing the Canadian market's growth rate of 11.5%. Recent initiatives include a share buyback program and AI advancements in supply chain management, enhancing operational efficiency and strategic positioning in volatile markets.

Insights from our recent growth report point to a promising forecast for Kinaxis' business outlook. Click here and access our complete balance sheet health report to understand the dynamics of Kinaxis.TSX:KXS Discounted Cash Flow as at Nov 2025

Lithium Royalty

Overview: Lithium Royalty Corp. is a lithium-focused royalty company operating in Canada, the United States, Australia, Argentina, Brazil, and South America with a market cap of CA$359.78 million.

Operations: The company's revenue primarily comes from the acquisition and management of royalty rights and working interests, totaling $1.79 million.

Estimated Discount To Fair Value: 44%

Lithium Royalty, trading at CA$6.55, is significantly undervalued compared to its estimated fair value of CA$11.69, presenting potential based on cash flows despite a current lack of meaningful revenue (US$2M). The company reported a reduced net loss for Q3 2025 and forecasts suggest profitability within three years with earnings growth expected at over 100% annually. Revenue growth is projected to outpace the Canadian market considerably, highlighting strong future prospects amidst recent share buybacks.

Our growth report here indicates Lithium Royalty may be poised for an improving outlook. Take a closer look at Lithium Royalty's balance sheet health here in our report.TSX:LIRC Discounted Cash Flow as at Nov 2025

Make It Happen

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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:CIGI TSX:KXS and TSX:LIRC.

This article was originally published by Simply Wall St.

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