As the Canadian market experiences shifts in business models, particularly within the technology sector, investors are encouraged to diversify their portfolios beyond just tech equities. In this context, identifying undervalued stocks can be a strategic move, with opportunities potentially found in sectors like materials and energy where valuation expansion might occur.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name Current Price Fair Value (Est) Discount (Est) Topicus.com (TSXV:TOI) CA$128.49 CA$228.29 43.7% Savaria (TSX:SIS) CA$21.19 CA$35.39 40.1% Northland Power (TSX:NPI) CA$18.04 CA$32.32 44.2% Neo Performance Materials (TSX:NEO) CA$16.89 CA$31.88 47% Lithium Royalty (TSX:LIRC) CA$6.13 CA$11.68 47.5% Haivision Systems (TSX:HAI) CA$5.00 CA$8.70 42.6% First Majestic Silver (TSX:AG) CA$16.66 CA$28.78 42.1% Endeavour Mining (TSX:EDV) CA$58.86 CA$94.21 37.5% Constellation Software (TSX:CSU) CA$3201.66 CA$5220.71 38.7% Birchcliff Energy (TSX:BIR) CA$7.35 CA$13.73 46.5%

Click here to see the full list of 22 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

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

First Majestic Silver

Overview: First Majestic Silver Corp. is involved in the acquisition, exploration, development, and production of mineral properties in North America, with a market cap of CA$8.03 billion.

Operations: First Majestic Silver Corp. generates revenue from several segments, including $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: 42.1%

First Majestic Silver is trading at CA$16.66, significantly below its estimated fair value of CA$28.78, indicating potential undervaluation based on cash flows. The company reported a substantial increase in third-quarter sales to US$285.06 million from US$146.09 million the previous year and turned profitable with net income of US$26.98 million compared to a loss previously. Despite insider selling, earnings are expected to grow significantly over the next three years, supported by a share repurchase program targeting 24.5 million shares.

According our earnings growth report, there's an indication that First Majestic Silver might be ready to expand. Unlock comprehensive insights into our analysis of First Majestic Silver stock in this financial health report.TSX:AG Discounted Cash Flow as at Nov 2025

H&R Real Estate Investment Trust

Overview: H&R Real Estate Investment Trust is one of Canada's largest REITs, managing assets worth approximately $9.6 billion and holding a market capitalization of CA$2.79 billion as of September 30, 2025.

Story Continues

Operations: As of September 30, 2025, H&R REIT's revenue segments include CA$423.67 million from office properties, CA$144.81 million from retail spaces, CA$101.67 million from industrial facilities, and CA$308.04 million from residential units.

Estimated Discount To Fair Value: 36.8%

H&R Real Estate Investment Trust, trading at CA$9.92, is significantly below its estimated fair value of CA$15.69, highlighting potential undervaluation based on cash flows. Despite a challenging financial position with net losses of CA$322.87 million for the third quarter and interest payments not well covered by earnings, revenue is forecast to grow 5.4% annually, outpacing the Canadian market's growth rate and supporting future profitability expectations within three years.

Upon reviewing our latest growth report, H&R Real Estate Investment Trust's projected financial performance appears quite optimistic. Click here to discover the nuances of H&R Real Estate Investment Trust with our detailed financial health report.TSX:HR.UN Discounted Cash Flow as at Nov 2025

Artemis Gold

Overview: Artemis Gold Inc. is engaged in the identification, acquisition, and development of gold properties, with a market cap of CA$7.95 billion.

Operations: Artemis Gold Inc. does not currently report any revenue segments in its financial disclosures.

Estimated Discount To Fair Value: 31.7%

Artemis Gold, trading at CA$35.85, is significantly undervalued with a fair value estimate of CA$52.45. Recent earnings show a turnaround with net income of CA$110.85 million in Q3 2025, compared to a loss last year, and robust revenue growth forecasts at 33% annually. Despite high debt levels and insider selling, the company maintains strong production guidance and is expanding exploration activities in British Columbia to enhance future cash flows.

Our expertly prepared growth report on Artemis Gold implies its future financial outlook may be stronger than recent results. Take a closer look at Artemis Gold's balance sheet health here in our report.TSXV:ARTG Discounted Cash Flow as at Nov 2025

Taking Advantage

Get an in-depth perspective on all 22 Undervalued TSX Stocks Based On Cash Flows by using our screener here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Interested In Other Possibilities?

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.

Companies discussed in this article include TSX:AG TSX:HR.UN and TSXV:ARTG.

This article was originally published by Simply Wall St.

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