While the broader TSX index is trading near all-time highs, several Canadian stocks are priced at an attractive valuation in September 2025. In this article, I have identified two such TSX stocks to buy right now with $3,000.
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Is this TSX stock a good buy?
Valued at a market cap of $669 million, Mattr (TSX: MATR) stock is down 72% from all-time highs, allowing you to buy the dip.
Mattr is a Canadian materials technology company operating through two segments:
- Composite Technologies manufactures flexible pipes for oil/gas and fibreglass storage tanks for fuel/water applications.
- Connection Technologies produces heat-shrinkable tubing, sleeves, and low-voltage electrical components.
Mattr serves transportation, communication, water management, and energy markets globally. In the second quarter (Q2), Mattr delivered mixed Q2 results as revenue from continuing operations grew by 33% to $321 million, driven by the acquisition of AmerCable. Comparatively, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew 5% to $42.5 million.
The Connection Technologies segment set new quarterly records for revenue and adjusted EBITDA, with sales nearly doubling year over year. Alternatively, the Composite Technologies segment faced pressure from declining international Flexpipe demand, which was offset by gains in domestic market share.
Copper tariffs are likely to impact annual material costs for Mattr by more than $100 million. Management expects to pass through most increases while implementing supply chain mitigation strategies. With net debt at 3.5 times EBITDA, Mattr maintains financial flexibility while targeting debt reduction and continued share repurchases.
Analysts tracking the TSX stock forecast sales to increase from $885.3 million in 2024 to $1.40 billion in 2027. Comparatively, adjusted earnings are forecast to expand from $0.70 per share to $1.57 per share in this period.
Mattr is also expected to end 2028 with a free cash flow of $161 million, compared to a $59 million outflow in 2024. If the stock is priced at 10 times forward FCF, it could surge around 150% over the next three years.
Is this Canadian stock still a good buy?
Down 23% from all-time highs, Hammond Power (TSX: HPS.A) has returned more than 2,300% to shareholders over the past decade. Valued at $1.44 billion by market cap, Hammond Power Solutions designs, manufactures, and sells transformers in Canada, the United States, Mexico, and India.
It offers buck-boost, control, distribution, drive isolation, encapsulated, furnace, multi-pulse, pad-mounted, and regulating transformers, among other products. The company serves renewable energy, commercial infrastructure, industrial, offshore drilling, mining, construction, petrochemical, power grid infrastructure, and EV charging industries.
Hammond Power Solutions delivered record quarterly sales of $224 million in Q2, an increase of 14% year over year, driven by strong U.S. market performance.
The Canadian transformer manufacturer continues to benefit from robust demand in the data centre sector, which is the fastest-growing segment within its diversified customer base across multiple industries.
Despite impressive revenue growth, gross margins compressed to 30.7% due to accelerated material cost inflation and approximately 123 basis points of impact from ramping new Mexican manufacturing facilities.
The company implemented annual price increases in April that should provide better margin relief in Q3 and Q4 as pricing flows through the backlog. Management expects facility ramp-up costs to diminish as production scales in the coming quarters.
The recently acquired Micron brand continues performing ahead of expectations, broadening Hammond’s solution portfolio, particularly in OEM (original equipment manufacturers) markets. Meanwhile, the company’s Mesta power quality division is showing promising momentum in active harmonic filters, offsetting the softness in EV-related induction heating applications.
Analysts tracking the TSX stock forecast it to end 2029 with a free cash flow of $102 million, up from $24 million in 2024. If the company is priced at 20 times forward FCF, it should gain close to 40% within the next four years.
