As we approach the end of 2025, Canadian markets have posted impressive double-digit gains, with investors keeping a close eye on central bank meetings and employment data to guide their year-end strategies. In this context of market optimism and economic resilience, identifying undervalued stocks becomes critical for investors looking for opportunities to expand their portfolios, especially in sectors that can benefit from stable interest rates and positive labor market trends.
|
Name |
Current price |
Fair value (East) |
Discount (East) |
|
Topicus.com (TSXV:TOI) |
CA$125.98 |
CA$223.31 |
43.6% |
|
Savaria (TSX:SIS) |
CA$21.67 |
CA$35.27 |
38.6% |
|
Neo Performance Materials (TSX:NEO) |
CA$16.71 |
CA$31.42 |
46.8% |
|
kneat.com (TSX:KSI) |
CA$4.70 |
CA$9.29 |
49.4% |
|
Haivision Systems (TSX:HAI) |
CA$5.29 |
CA$8.65 |
38.8% |
|
GURU Organic Energy (TSX:GURU) |
CA$4.75 |
CA$8.91 |
46.7% |
|
EQB (TSX:EQB) |
CA$96.71 |
CA$189.15 |
48.9% |
|
Dexterra Group (TSX:DXT) |
CA$11.95 |
CA$22.90 |
47.8% |
|
Decisive dividend (TSXV:DE) |
CA$7.12 |
CA$14.19 |
49.8% |
|
Constellation Software (TSX:CSU) |
CA$3325.82 |
CA$5810.60 |
42.8% |
Click here to see the full list of 28 stocks from our Undervalued TSX Stocks by Cash Flows screener.
We’re going to take a look at some of the top picks from our screener tool.
Overview: Constellation Software Inc. acquires, builds and manages vertical market software companies to provide mission-critical solutions for the public and private sectors, with a market capitalization of CA$70.48 billion.
Operations: The company’s revenue segment is mainly from Software & Programming and amounts to $11.15 billion.
Estimated discount to fair value: 42.8%
Constellation Software is trading at CA$3325.82, significantly lower than its estimated fair value of CA$5810.6, presenting a potential opportunity based on cash flows. Despite high debt levels and recent insider selling, earnings are expected to grow substantially at 23.4% per year, which will be faster than the growth rate of the Canadian market. Recent earnings figures show that sales in the third quarter of 2025 rose to $2.95 billion from $2.54 billion the year before, while net profit rose from $164 million to $210 million.
Overview: BRP Inc. engages, together with its subsidiaries, in the design, development, manufacture and sale of motorsports vehicles and marine products in several countries, including Mexico, Canada, Austria, the United States, Finland, Australia and Germany; it has a market capitalization of CA$7.78 billion.
