Companies that are recently trading at a market price lower than their real values include Spackman Equities Group and Newfoundland Capital. 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.

Spackman Equities Group Inc. (TSXV:SQG)

Spackman Equities Group Inc., an investment holding company, invests into and develops small/medium-sized growth companies primarily in Asia. Spackman Equities Group was established in 2006 and with the company’s market cap sitting at CAD CA$6.70M, it falls under the small-cap stocks category.

SQG’s stock is now hovering at around -45% below its actual value of $0.08, at a price tag of $0.05, based on its expected future cash flows. The difference between value and price signals a potential opportunity to buy SQG shares at a discount. In addition to this, SQG’s PE ratio is currently around 1.6x while its media peer level trades at 25.4x, implying that relative to its peers, you can buy SQG for a cheaper price. SQG is also in great financial shape, as current assets can cover liabilities in the near term and over the long run. SQG has zero debt on its books as well, meaning it has no long term debt obligations to worry about.

Newfoundland Capital Corporation Limited (TSX:NCC.A)

Newfoundland Capital Corporation Limited operates as a radio broadcaster in Canada. Started in 1949, and run by CEO Robert Steele, the company currently employs 800 people and with the market cap of CAD CA$327.82M, it falls under the small-cap group.

NCC.A’s shares are currently hovering at around -41% below its intrinsic value of $21.49, at a price of $12.61, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy NCC.A shares at a discount. Additionally, NCC.A’s PE ratio is trading at around 10.8x relative to its media peer level of 25.4x, suggesting that relative to its peers, we can invest in NCC.A at a lower price. NCC.A is also in great financial shape, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 74% has over the past couple of years signalling NCC.A’s capability

High Arctic Energy Services Inc (TSX:HWO)

High Arctic Energy Services Inc. operates as an oilfield services company in Western Canada and Papua New Guinea. Started in 1993, and currently lead by Michael Binnion, the company size now stands at 809 people and with the company’s market capitalisation at CAD CA$206.85M, we can put it in the small-cap category.

HWO’s stock is now trading at -31% less than its intrinsic value of $5.47, at the market price of $3.78, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In terms of relative valuation, HWO’s PE ratio stands at around 8.3x against its its energy equipment and services peer level of 28.7x, implying that relative to its comparable company group, we can invest in HWO at a lower price. HWO is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run. It’s debt-to-equity ratio of 5% has been dropping for the last couple of years showing its capability 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.