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What are we looking for?

Artificial Intelligence at Report on Business uses the power of AI to create a fundamental valuation for every TSX stock after-market each day. Then it sorts them out to look for potentially underpriced winners.

The screen

ROB AI analyzed every TSX company with a market capitalization between $300-million and $2-billion to look for the biggest differences between what AI thinks they are worth on paper and their actual current trading price.

Valuations are generated using a proprietary algorithm from up to six data calculations with an approach that has been historically correct 78 per cent of the time.

What we found

Underpriced small cap stocks

TICKERCOMPANYLASTVALUATION$DIF%DIFP/EP/SAVG VOL
SGR-UN-TSlate Grocery REIT10.0119.639.6296.107.403.47 1,695
CRON-TCronos Group2.624.591.9775.197.57 268,617
LSPD-TLightspeed Commerce19.0833.3114.2374.58188.683.03 1,101,763
ADEN-TAdentra24.6041.6617.0669.358.250.17 64,586
HOM-U-TBSR REIT13.3721.788.4162.9014.123.01 23,656
REAL-TReal Matters4.647.492.8561.420.94 143,703
ACQ-TAutocanada20.4532.8812.4360.786.020.10 77,326
SFC-TSagicor Financial4.957.942.9960.403.600.21 14,794
BLDP-TBallard Power Systems6.7310.794.0660.3317.63 798,571
TLRY-TTilray3.345.201.8655.692.28 1,027,354

Source: Barchart/Stockcalc

The list is sorted by stocks with the greatest percentage difference between valuation and price. Companies on this list are worthy of further research, including:

  • Adentra Inc. ADEN-T is one of North America’s largest suppliers to the architecture industry. Its stock price is off 50 per cent from its all-time high because of a decrease in top-line growth and the 2023 inflationary environment. Fundamentally it boasts a strong balance sheet with low price-earnings and price-sales ratios.
  • Tilray Inc. TLRY-T is a cannabis producer and is presently the largest marijuana play in the Canadian sector. Their stock price fell 56 per cent in the past year – the most on this list – as the entire cannabis industry remains in early stages. It is sitting on over $400-million in cash while it waits for movement from U.S. lawmakers.
  • Ballard Power Systems Inc. BLDP-T is a Canadian cleantech that sells fuel cells to ship and store energy for transportation. It is a growth play for investors seeking exposure to renewables. The stock is off 47 per cent in the past year, has yet to turn a profit, and its price-sales is the most expensive in this list. But it has cash on hand to fuel expansion and there is no denying the global commitment to green energy.

More about Artificial Intelligence at Report on Business

Artificial Intelligence at Report on Business scans market data using algorithms to process large quantities of information. The results are specialized reports produced through automation.

Continuing ROB project experiments that leverage artificial intelligence include valuation screens across 14 categories and end-of-day Closing Summary reports for all North American securities.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 12/06/24 10:30am EDT.

SymbolName% changeLast
ADEN-T
Adentra Inc
+1.47%38.66
TLRY-T
Tilray Inc
+1.24%2.44
CRON-T
Cronos Group Inc
+0.59%3.43
LSPD-T
Lightspeed Commerce Inc.
+1.26%20.91
HOM-U-T
Bsr Real Estate Investment Trust
-0.53%11.33
ACQ-T
Autocanada Inc
+0.39%20.54

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