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June Undervalued Stock Opportunities

Companies that are recently trading at a market price lower than their real values include Clairvest Group and Omni-Lite Industries Canada. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.

Clairvest Group Inc. (TSX:CVG)

Clairvest Group Inc. is a private equity firm specializing in mid market, growth equity investments, buyouts, and consolidating industries and add-on acquisitions. Started in 1987, and now led by CEO Kenneth Rotman, the company employs 32 people and with the stock’s market cap sitting at CAD CA$699.82M, it comes under the small-cap group.

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CVG’s shares are now floating at around -64% less than its true value of $128.32, at a price of CA$46.00, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. In addition to this, CVG’s PE ratio stands at 5.71x while its Capital Markets peer level trades at, 11.94x meaning that relative to other stocks in the industry, we can buy CVG’s stock at a cheaper price today. CVG is also a financially healthy company, as short-term assets amply cover upcoming and long-term liabilities. CVG has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Dig deeper into Clairvest Group here.

TSX:CVG PE PEG Gauge Jun 3rd 18
TSX:CVG PE PEG Gauge Jun 3rd 18

Omni-Lite Industries Canada Inc. (TSXV:OML)

Omni-Lite Industries Canada Inc. develops, manufactures, and sells precision components to Fortune 500 companies in the United States, Canada, and Barbados. The company was established in 1992 and has a market cap of CAD CA$12.55M, putting it in the small-cap category.

OML’s stock is now hovering at around -46% beneath its actual worth of $2.32, at a price of CA$1.25, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. Furthermore, OML’s PE ratio stands at 13.38x relative to its Machinery peer level of, 26.82x implying that relative to other stocks in the industry, we can buy OML’s stock at a cheaper price today. OML is also robust in terms of financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. OML has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More detail on Omni-Lite Industries Canada here.

TSXV:OML PE PEG Gauge Jun 3rd 18
TSXV:OML PE PEG Gauge Jun 3rd 18

Torrent Capital Ltd. (TSXV:TORR)

Torrent Capital Ltd., an investment company, focuses on investments in private and public company securities. Torrent Capital is headed by CEO Wade Dawe. It currently has a market cap of CAD CA$5.32M placing it in the small-cap category

TORR’s stock is currently trading at -63% lower than its real value of $0.62, at a price of CA$0.23, according to my discounted cash flow model. This mismatch indicates a chance to invest in TORR at a discounted price. Additionally, TORR’s PE ratio is trading at 5.35x relative to its Capital Markets peer level of, 11.94x meaning that relative to its comparable company group, you can buy TORR’s shares at a cheaper price. TORR is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run. TORR also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Interested in Torrent Capital? Find out more here.

TSXV:TORR PE PEG Gauge Jun 3rd 18
TSXV:TORR PE PEG Gauge Jun 3rd 18

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.