The TSX has shown remarkable resilience, surviving the tariff threats and surging amid escalating trade tensions. Canada’s primary stock exchange is up 6.5% year-to-date, following multiple record highs that began in mid-May and continued to the present. The good news for investors is that first-quarter earnings of domestic companies have been solid.
Expect several stocks trading below their perceived actual or intrinsic values to rise from here on. An undervalued Canadian stock with massive upside is Propel Holdings (TSX:PRL). The financial stock is down 9.2% thus far in 2025 but has gained 22.2%-plus in the last three months. Read on to know why this is the one you should buy right now.
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Just getting started
Propel Holdings is one of the fastest-growing financial technology companies in Canada. The $1.3 billion fintech provides credit solutions, including loans and lines of credit, to underserved consumers through an artificial intelligence (AI)-driven consumer lending platform. Its record-breaking financial results in recent quarters are compelling reasons to consider PRL for inclusion in your investment portfolio.
Besides the growing number of borrowers shunned by traditional lenders, such as banks, the company eyes international expansion and strategic acquisitions to accelerate growth. Propel Holdings is far from its peak potential. It believes the profitable, diversified, and scalable business has significant growth opportunities.
Record quarterly results
In the three months ending March 31, 2025, revenue and net income climbed 44% and 79% respectively to US$138.9 million and US$23.5 million compared to Q1 2024. The Adjusted EBITDA of US$41.2 million and Ending Combined Loan and Advance Balances (CLAB) of $483.2 million were also new records. At the quarter’s end, Loans and Advances Receivables reached a record US$380.1 million.
Propel Holdings and its bank partners delivered the strongest credit performance for a quarter since Q2 2021, notwithstanding the economic uncertainty. According to management, the first quarter is typically the slowest demand quarter, yet the fintech originated a record volume in three months. It expects the strong consumer demand to fuel growth throughout 2025.
Because of the solid operating results and financial position, the Board supported and approved a 9% increase to the quarterly dividend. If you invest today, the share price is $33.06, with a dividend offer of 2.2%. Market analysts recommend a “buy” to a “strong-buy” rating. Their 12-month average price target is $41.12 (+24.4%).
Latest accolade
In April 2025, Propel Holdings was included in the Financial Times’ Americas’ Fastest-Growing Companies 2025 ranking. The list comprises the top 500 companies in the Americas with the highest compound annual growth in revenues between 2020 and 2023.
Its CEO, Clive Kinross, said, “From 2020 to 2023, we achieved 63% cumulative annual growth for revenue, 56% cumulative annual growth for net income, and 56% cumulative annual growth for adjusted net income.” Propel Holdings’ revenue has been steadily growing yearly since 2021. In 2024, the top line grew 41.6% year-over-year to US$416 million.
Growth powerhouse
Propel Holdings is a top pick for Canadian investors looking for business resilience and a growth powerhouse. The fintech commits to expanding access to credit for underserved consumers worldwide. “For us, growth isn’t just measured in numbers, it’s defined by impact,” Kinross added.
