TSX April 2026 Stocks That Could Be Undervalued

As the Canadian market navigates through a period of elevated inflation and cautious consumer spending, investors are keeping a close eye on how central banks balance interest rates amid fluctuating oil prices. In this environment, identifying undervalued stocks becomes crucial as they may offer potential opportunities for growth despite broader economic uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name Current Price Fair Value (Est) Discount (Est) Vermilion Energy (TSX:VET) CA$17.86 CA$34.11 47.6% Topicus.com (TSXV:TOI) CA$94.49 CA$167.93 43.7% Timbercreek Financial (TSX:TF) CA$6.70 CA$11.78 43.1% Pollard Banknote (TSX:PBL) CA$18.01 CA$31.69 43.2% OceanaGold (TSX:OGC) CA$45.63 CA$80.83 43.5% Hemlo Mining (TSXV:HMMC) CA$6.49 CA$11.88 45.4% EQB (TSX:EQB) CA$111.08 CA$211.76 47.5% Endeavour Mining (TSX:EDV) CA$86.43 CA$150.74 42.7% Americas Gold and Silver (TSX:USA) CA$7.79 CA$13.82 43.6% Altus Group (TSX:AIF) CA$47.53 CA$92.14 48.4%

Click here to see the full list of 30 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Kits Eyecare

Overview: Kits Eyecare Ltd. operates a digital eyecare platform in the United States and Canada, with a market cap of CA$534.95 million.

Operations: The company generates revenue from the sale of eyewear products, amounting to CA$202.46 million.

Estimated Discount To Fair Value: 26.8%

Kits Eyecare is trading at CA$15.81, significantly below its estimated future cash flow value of CA$21.59, suggesting it may be undervalued based on discounted cash flows. Earnings are forecast to grow substantially at 50.7% annually, outpacing the Canadian market's growth rate of 10.2%. Despite a low projected return on equity of 13.8%, revenue growth is expected to surpass the market average, driven by strategic product expansions like the Pangolin Smart Glasses line and new leadership appointments enhancing brand development and digital capabilities.

According our earnings growth report, there's an indication that Kits Eyecare might be ready to expand. Delve into the full analysis health report here for a deeper understanding of Kits Eyecare.TSX:KITS Discounted Cash Flow as at Apr 2026

Toromont Industries

Overview: Toromont Industries Ltd. is a company that provides specialized capital equipment across Canada, the United States, and internationally with a market capitalization of CA$15.88 billion.

Operations: The company's revenue is primarily derived from its Equipment Group segment, which generated CA$4.68 billion, and its CIMCO segment, which contributed CA$524.16 million.

Estimated Discount To Fair Value: 10%

Story Continues

Toromont Industries is trading at CA$197.77, slightly below its estimated future cash flow value of CA$219.83, indicating potential undervaluation based on cash flows. The company's earnings are forecast to grow at 14.9% annually, outpacing the Canadian market's 10.2% growth rate, with revenue expected to rise by 6.3%. Recent inclusion in the FTSE All-World Index and a dividend increase further bolster its investment appeal despite modest net income growth last year.

The analysis detailed in our Toromont Industries growth report hints at robust future financial performance. Unlock comprehensive insights into our analysis of Toromont Industries stock in this financial health report.TSX:TIH Discounted Cash Flow as at Apr 2026

New Found Gold

Overview: New Found Gold Corp. is a mineral exploration company focused on identifying, evaluating, acquiring, and exploring mineral properties in Newfoundland and Labrador, Canada, with a market cap of approximately CA$897.55 million.

Operations: New Found Gold Corp. does not currently report any revenue segments, as it is focused on the exploration and development of its mineral properties in Newfoundland and Labrador, Canada.

Estimated Discount To Fair Value: 16.2%

New Found Gold, trading at CA$2.78, is undervalued relative to its estimated future cash flow value of CA$3.32. Despite a net loss of CA$47.57 million in 2025, the company shows promise with revenue forecasted to grow at 48.2% annually, significantly outpacing the Canadian market's growth rate. Recent high-grade drill results from its Queensway Gold Project and a positive Preliminary Economic Assessment for the Hammerdown Project support potential future profitability within three years.

Insights from our recent growth report point to a promising forecast for New Found Gold's business outlook. Navigate through the intricacies of New Found Gold with our comprehensive financial health report here.TSXV:NFG Discounted Cash Flow as at Apr 2026

Taking Advantage

Unlock our comprehensive list of 30 Undervalued TSX Stocks Based On Cash Flows by clicking here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TSX:KITS TSX:TIH and TSXV:NFG.

This article was originally published by Simply Wall St.

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