Three Underrated Canadian Stocks To Watch

September 20, 2024 10:36 AM EDT | By Team Kalkine Media
 Three Underrated Canadian Stocks To Watch
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Freehold Royalties Ltd. 

Overview: Freehold Royalties Ltd. (TSX:FRU) operates in the oil and gas sector, focusing on acquiring and managing royalty interests in crude oil, natural gas, natural gas liquids, and potash properties across Western Canada and the United States. The company has a market capitalization of CA$2.12 billion.

Operations: The primary revenue stream for Freehold Royalties originates from its oil and gas exploration and production activities, generating CA$323.04 million. In Q2 2024, Freehold Royalties reported a net income of CA$39.3 million, an increase from CAD 24.26 million in the previous year. The company's net debt to equity ratio is a favorable 24.6%, and interest payments are adequately covered by EBIT, with a coverage ratio of 15.3x. The stock currently trades at 57.7% below its estimated fair value. Additionally, Freehold has announced a monthly dividend of CAD 0.09 per share, payable on October 15, 2024.

For more detailed insights, refer to the health report on Freehold Royalties and its past performance.

Hammond Power Solutions Inc.

Overview: Hammond Power Solutions Inc. operates within the electrical sector, specializing in the design, manufacture, and sale of transformers across Canada, the United States, Mexico, and India. The market cap for Hammond Power Solutions stands at CA$1.60 billion.

Operations: The company generates revenue primarily from transformer manufacturing and sales, totaling CA$754.37 million. Hammond Power Solutions has demonstrated significant earnings growth of 12.3% over the past year, outpacing the electrical industry average of 6.5%. The stock trades at 38.9% below its estimated fair value. The debt to equity ratio has improved substantially from 27.7% to 5% over the last five years, with interest payments covered by EBIT at an impressive rate of 87.6x. The company has declared a quarterly dividend of CAD 0.275 per share, payable on September 27, 2024, reflecting its strong financial health.

For additional details, check the health report on Hammond Power Solutions and its historical performance.

Silvercorp Metals Inc. 

Overview: Silvercorp Metals Inc. (TSX:SVM) is involved in the mining sector, focusing on the acquisition, exploration, development, and mining of mineral properties through its subsidiaries. The company has a market cap of CA$1.17 billion.

Operations: Silvercorp generates revenue primarily from its mining operations in Henan Luoning, contributing CA$200 million, and in Guangdong, which adds CA$27.35 million. The company has achieved remarkable earnings growth of 149.4% over the past year, significantly surpassing the industry average of 1.2%. Silvercorp trades at 90.8% below its estimated fair value and has maintained a debt-free status for over five years. Recently, Silvercorp announced a share repurchase program to buy back up to 8.67 million shares by September 2025, aimed at enhancing shareholder value by reducing the total outstanding shares.

For further insights, explore the health report on Silvercorp Metals and its past performance.




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