Shree in the Lachlan Fold Belt, Applies for new Tenement

Summary

  • Toronto Stock Exchange’s ‘undervalued’ list highlights stocks with low price to earnings ratio.
  • Aimia Inc (TSX: AIM), Neovasc Inc (TSX: NVCN), Intermap Technologies Corporation (TSX: IMP), and Resverlogix Corp (TSX: RVX) are five stocks from TSX’s undervalued stocks list.
  • Resverlogix and Neovasc are from health care sector, while Aimia from industrials, Imperial from basic materials and Intermap from technology.

The Toronto Stock Exchange has highlighted a list of ‘undervalued’ stocks on its website, based on low price to earnings ratio. We look at five undervalued stocks from the list: Aimia Inc (TSX: AIM), Neovasc Inc (TSX: NVCN), Intermap Technologies Corporation (TSX: IMP), and Resverlogix Corp (TSX: RVX). All these stocks are priced between C$1 to C$5 and trade on the TSX.

Without any further ado, let us look at the five undervalued stocks and decipher their performances. Please note, stock price and performances are subject to market movements and may change over time.

1. Aimia Inc. (TSX: AIM)

Sector: Industrials

Industry: Business Services

AIM Current Stock Price: C$ 4.06

Aimia is a loyalty solutions provider in multiple sectors such as aviation, travel, retail etc. Its stocks have advanced over 13 per cent year-to-date (YTD), outperforming the TSX industrials index, which has posted 5.23 per cent YTD gains in comparison.

In the last six months, the scrips have yielded over 108 per cent returns. Aimia stock is up 39 per cent in the last three months and has gained 22 per cent in a month.

Aimia’s current market capitalization is C$ 387 million, while its return on equity is 33.57 per cent.

In the second quarter financial reports 2020 (ending June 30), Aimia’s income dropped over 80 per cent year-on-year (YoY) to C$ 9.2 million, while earnings plunged by 82 per cent YoY to C$ 6.1 million.

The company is now venturing into investment holdings segment, supported by C$ 516-million proceeds from sale of Aeroplan to Air Canada last year. Aimia stock ranks well on the TSX’s list of outperforming TSX and TSXV Industrial stocklist, based on most price gains in 30 days.

2. Imperial Metals Corporation (TSX: III)

Sector: Basic Materials

Industry: Metals & Mining

III Current Stock Price: C$ 3.10

Imperial stocks rose on the back of ongoing metals rally amid pandemic, advancing by 45 per cent YTD. After tanking to C$ 1.1 in the March market crash, the stocks jumped over 110 per cent in the last six months. The stocks have gained 57 per cent in the last three months.

In its second quarter 2020 financial results (ending 30 June 2020), Imperial’s total revenue from continuing operations surged 107.8 per cent YoY to C$ 45.1 million. Net income from continuing operations in Q2 stood at C$ 0.7 million, as compared to a net loss of C$ 9.7 million in the same quarter last year. Its current market capitalization is about C$ 379 million while return on equity is 56.95 per cent.

3. Neovasc Inc. (TSX: NVCN)

Sector: Healthcare

Industry: Medical Devices & Instruments

NVCN Current Stock Price: C$ 2.86

Medical device manufacturing company Neovasc has a high return on equity of 596.88 per cent, as per TSX. Its scrips shelved over 60 per cent value this year but has gained about 12 per cent in the last six months.

The company recently announced the closure of US$ 12.6 million registered direct offering priced at-the-market, receiving net proceeds of approximately C$ 11.3 million. The proceeds will be used for development and commercialization of Neovasc products and general corporate and working capital purposes.

Neovasc products include Reducer and Tiara. The first product is used for treatment of refractory angina, while the second for transcatheter treatment of mitral valve disease. Its current market capitalization is C$ 64.7 million.

(Source Neovasc / Image: Kalkine Media)

4. Intermap Technologies Corporation (TSX: IMP)

Sector: Technology

Industry: Software

IMP Current Stock Price: C$ 1.16

Digital mapping company Intermap ranks well on TSX’s Top Tech stocklist, which is a list TSX and TSXV technology stocks with most price gains in last 30 days.

Intermap Technology stocks have performed well in the face of the pandemic, surging 400 per cent YTD. In the last three months, the shares have jumped by 214 per cent. The scrips advanced by nearly 30 per cent in one month.

The C$ 25 million-tech firm has a current 377 per cent return on assets, as per data on the TSX. Its price-to-book ratio is 116.

Intermap provides geospatial solutions producing 3D elevation models to understand their terrain environment. The company has customers across government agencies, insurance, aviation, and telecom industries. Some of its clients include the US Government Department of Defense, the US Department of Homeland Security, National Oceanographic and Atmospheric Administration and Lufthansa Systems.

The company recently raised C$ 2 million through private placement. For the quarter ending 30 June 2020, Intermap expects revenues of US$ 1.1 million, down from US$ 1.2 million in the same quarter last year. The company’s cash in hand at the end of the quarter is projected to be US$ 1.1 million.

5. Resverlogix Corp. (TSX: RVX)

Sector: Healthcare

Industry: Biotechnology

RVX Current Stock Price: C$ 1.09

Scrips of this clinical-stage biotechnology company are down nearly 18 per cent this year. However, in the last one month, Resverlogix stocks have jumped almost 35 per cent.

The company recently announced private placement of 3.5 million shares for gross proceeds of approximately C$2.7 million. The net proceeds will be diverted to research and development, working capital needs and general and administrative expenses, said the company in a statement.

In March this year, Resverlogix’s clinical candidate apabetalone (RVX-208) was named as a potential COVID-19 treatment.

In 2019, Resverlogix had earned a place in the TSX30 list. Its current market capitalisation is C$ 227.5 million.


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