Guardian Capital Group And Other Top Undervalued Stocks
Companies with shares trading at a market price below what they are actually worth, such as Guardian Capital Group and Chibougamau Independent Mines, are deemed undervalued. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Guardian Capital Group Limited (TSX:GCG.A)
Guardian Capital Group Limited, through its subsidiaries, operates as a diversified financial services company in Canada, the United Kingdom, the United States, and the Caribbean. Started in 1962, and now led by CEO George Mavroudis, the company employs 354 people and with the company’s market capitalisation at CAD CA$671.19M, we can put it in the small-cap category.
GCG.A’s stock is currently trading at -21% under its actual worth of $30.33, at a price of $24.11, based on its expected future cash flows. The mismatch signals a potential chance to invest in GCG.A at a discounted price. In addition to this, GCG.A’s PE ratio is trading at 8.2x against its its capital markets peer level of 14.2x, indicating that relative to its competitors, you can purchase GCG.A’s stock for a lower price right now. GCG.A is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 13% has been diminishing over the past couple of years signifying GCG.A’s capability to reduce its debt obligations year on year.
Chibougamau Independent Mines Inc. (TSXV:CBG)
Chibougamau Independent Mines Inc. engages in the acquisition, exploration, and development of natural resource properties in Canada. Chibougamau Independent Mines was established in 2010 and with the company’s market capitalisation at CAD CA$2.11M, we can put it in the small-cap stocks category.
CBG’s stock is now floating at around -66% under its actual worth of $0.16, at a price tag of $0.06, based on its expected future cash flows. The divergence signals an opportunity to buy CBG shares at a low price. Additionally, CBG’s PE ratio is around 8x relative to its metals and mining peer level of 11.1x, suggesting that relative to its peers, you can purchase CBG’s stock for a lower price right now. CBG is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 3% has over the past couple of years showing CBG’s capability
Firan Technology Group Corporation (TSX:FTG)
Firan Technology Group Corporation, together with its subsidiaries, supplies aerospace and defense electronic products and subsystems worldwide. Started in 1983, and now led by CEO Bradley Bourne, the company currently employs 465 people and with the market cap of CAD CA$81.42M, it falls under the small-cap group.
FTG’s stock is currently hovering at around -48% beneath its actual worth of $6.85, at the market price of $3.58, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. What’s even more appeal is that FTG’s PE ratio stands at around 47.1x while its electronic equipment, instruments and components peer level trades at 38.2x, meaning that relative to its competitors, FTG can be bought at a cheaper price right now. FTG is also in great financial shape, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 29%, which has been reducing for the past few years revealing FTG’s capacity to reduce its debt obligations year on year.
For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our 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.
