In the wake of a decisive U.S. election outcome, Canadian markets are experiencing renewed optimism, with the TSX reaching record highs alongside its American counterparts. As investors navigate this post-election landscape, attention turns to long-term fundamentals and identifying promising opportunities within Canada’s small-cap sector. A good stock in this environment often displays strong fundamentals and potential for growth, making it well-positioned to benefit from favorable economic conditions and market sentiment shifts.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
TWC Enterprises	6.24%	12.63%	23.89%	★★★★★★
Reconnaissance Energy Africa	NA	15.28%	7.58%	★★★★★★
Grown Rogue International	24.92%	43.35%	67.95%	★★★★★☆
Mako Mining	22.90%	38.12%	54.79%	★★★★★☆
Maxim Power	25.01%	13.56%	17.14%	★★★★★☆
Queen’s Road Capital Investment	7.20%	22.14%	22.20%	★★★★☆☆
Corby Spirit and Wine	75.89%	5.97%	-5.75%	★★★★☆☆
Petrus Resources	19.44%	17.39%	46.03%	★★★★☆☆
Genesis Land Development	47.40%	28.61%	52.30%	★★★★☆☆
DIRTT Environmental Solutions	58.73%	-5.34%	-5.43%	★★★★☆☆

Click here to see the full list of 43 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

We’ll examine a selection from our screener results.

Corby Spirit and Wine

Simply Wall St Value Rating: ★★★★☆☆

Overview: Corby Spirit and Wine Limited, along with its subsidiaries, engages in the production, marketing, and importation of spirits, wines, and ready-to-drink cocktails across Canada, the United States, the United Kingdom, and other international markets with a market cap of CA$352.95 million.

Operations: Corby Spirit and Wine generates revenue primarily from Case Goods, contributing CA$198.75 million, followed by Commissions at CA$26.59 million.

Corby Spirit and Wine, a notable player in Canada’s beverage industry, has shown resilience with earnings growth of 8.9% over the past year, outpacing the industry average. Despite a high net debt to equity ratio of 58.3%, their interest payments are well covered by EBIT at 7.2x coverage, indicating strong financial management. The company’s price-to-earnings ratio stands attractively at 14.8x compared to the industry’s 25.8x average. Recently, Corby launched a new RTD product line in collaboration with Ocean Spray®, potentially boosting market presence and consumer engagement across Canada by Spring 2025.

• Get an in-depth perspective on Corby Spirit and Wine’s performance by reading our health report here.

• Evaluate Corby Spirit and Wine’s historical performance by accessing our past performance report.

TSX:CSW.A Debt to Equity as at Nov 2024SilverCrest Metals

Simply Wall St Value Rating: ★★★★★★

Overview: SilverCrest Metals Inc. focuses on acquiring, exploring, and developing precious metal properties in Mexico with a market capitalization of CA$2.13 billion.

Operations: SilverCrest Metals generates revenue primarily from its Las Chispas project, amounting to $261.54 million.

SilverCrest Metals, a nimble player in the mining sector, has demonstrated robust earnings growth of 30.6% over the past year, outpacing its industry peers. Despite having no debt for five years and maintaining high-quality earnings, future projections suggest an average annual decline of 19.2% in earnings over the next three years. Recent production results show a slight dip with gold recovery at 14,928 oz compared to last year’s 15,700 oz and silver recovery at 1.41 million oz down from 1.49 million oz; however, ore mined increased significantly to 124,229 tonnes from last year’s 83,800 tonnes. Notably poised for transformation through Coeur Mining’s acquisition valued at approximately US$1.7 billion—equating to $11.34 per share—this transaction is anticipated to conclude by Q1 of next year pending regulatory approvals and shareholder consent.

• Dive into the specifics of SilverCrest Metals here with our thorough health report.

• Understand SilverCrest Metals’ track record by examining our Past report.

TSX:SIL Earnings and Revenue Growth as at Nov 2024Alphamin Resources

Simply Wall St Value Rating: ★★★★★★

Overview: Alphamin Resources Corp., along with its subsidiaries, focuses on the production and sale of tin concentrates and has a market capitalization of CA$1.61 billion.

Operations: Alphamin Resources generates revenue primarily through the production and sale of tin concentrates. The company has a market capitalization of CA$1.61 billion, reflecting its position in the tin industry.

Alphamin Resources, a notable player in the mining sector, has demonstrated robust financial performance with earnings growth of 35.4% over the past year, outpacing industry averages. The company reported impressive sales of US$174.55 million for Q3 2024, a significant increase from US$80.78 million in the same period last year, alongside net income rising to US$32.94 million from US$14.73 million previously. Furthermore, Alphamin’s net debt to equity ratio stands at a satisfactory 0.3%, reflecting strong financial health and effective debt management over recent years as it reduced from 56.8% to 17.3%.

• Unlock comprehensive insights into our analysis of Alphamin Resources stock in this health report.

• Learn about Alphamin Resources’ historical performance.

TSXV:AFM Debt to Equity as at Nov 2024Key Takeaways

• Investigate our full lineup of 43 TSX Undiscovered Gems With Strong Fundamentals right here.

• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.

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Seeking Other Investments?

• Explore high-performing small cap companies that haven’t yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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:CSW.A TSX:SIL and TSXV:AFM.

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