Undervalued Canadian Small Caps With Insider Activity

NorthWest Healthcare Properties Real Estate Investment Trust

NorthWest Healthcare Properties Real Estate Investment Trust, a Canadian real estate investment trust, operates within the healthcare real estate sector. With a market capitalization around CA$2.80 billion, it focuses on managing properties specialized for healthcare use.

In its recent financial performance, NorthWest Healthcare reported quarterly revenues of CA$523.85 million. Despite a high gross profit margin of 77.81%, the company faced significant net losses of CA$394.40 million, largely due to substantial operating and non-operating expenses. The price-to-earnings ratio stands at -3.4x, indicating that the company is currently operating at a loss relative to its earnings.

Recent insider activity suggests a degree of confidence, as evidenced by Peter Aghar’s purchase of 100,000 shares. The company continues to offer monthly distributions of CA$0.03 per unit, reflecting a commitment to provide returns to shareholders. Despite the current financial challenges, forecasts suggest a potential for future growth.

Nexus Industrial REIT

Nexus Industrial REIT (TSXV:NXS) specializes in owning and managing a diversified portfolio of industrial properties, with a market cap of approximately CA$1.02 billion. The company derives its revenue primarily from investment properties, maintaining a gross profit margin of 71.56%.

Nexus Industrial REIT reported increased sales of CA$43.91 million for the second quarter of 2024, up from CA$38.42 million the previous year. However, net income declined to CA$43.53 million from CA$77.22 million, highlighting some financial volatility. The company’s price-to-earnings ratio is 3.8x. Despite these fluctuations, Nexus Industrial REIT has shown resilience through consistent monthly distributions of CA$0.05333 per unit, signaling steady financial management.

Vermilion Energy

Vermilion Energy operates as an international oil and gas exploration and production company with a market capitalization of CA$3.25 billion. It focuses on extracting and producing oil and gas, generating revenues totaling CA$1.81 billion. The company’s gross profit margin is currently at 65.72%.

Recently, Vermilion Energy has made notable advancements, including the successful testing of a deep gas well in Germany, demonstrating significant flow rates and high wellhead pressure. Despite reporting a net loss of CA$82 million in the second quarter of 2024, down from a net income in the previous year, the company remains active in share repurchases and maintains its production guidance between 83,000-86,000 barrels of oil equivalent per day for the year. The company’s price-to-earnings ratio is -2.4x, reflecting its current loss position.