Undervalued stocks usually don’t look perfect. That’s why they’re undervalued. They often come with messy headlines, slower growth, weak sentiment, or a business in transition. The trick is finding companies where the bad news already looks priced in, while the long-term business still has life. Right now, investors don’t need to chase the hottest stock on the TSX, but can look for overlooked names with real revenue, improving margins, strong niches, and a path back to better growth.
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FSZ
Fiera Capital (TSX:FSZ) is one of those names. The company is a Montreal-based asset manager with institutional, wealth, and private-markets clients. In short, Fiera Capital manages money for pension funds, investors, and advisers. That makes it sensitive to markets, but it also gives it a sticky fee base when clients stay put. Over the last year, the story has centred on stabilizing assets under management (AUM) and improving efficiency. Preliminary AUM came in at about $160.2 billion at the end of March 2026, down from $164.1 billion at the end of 2025.
The latest earnings showed why Fiera Capital stock still deserves a look. In the fourth quarter of 2025, Fiera Capital stock reported revenue of $180.1 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $54.7 million, with an adjusted EBITDA margin of 30.4%. For the full year, revenue reached $673 million, while adjusted EBITDA came in at $194.1 million. The valuation looks modest, with a market cap around $605 million and a price-to-earnings (P/E) ratio near 16. The dividend yield of 7.5% will catch eyes, though investors should remember asset managers can feel pain when markets fall or clients pull money.
CMG
Computer Modelling Group (TSX:CMG) is more niche, but that’s part of the appeal. The Calgary company provides software and consulting used for reservoir modelling, seismic interpretation, and energy planning. It helps energy companies make better decisions about oil and gas fields, but its tools also have a role in energy transition work such as carbon storage. The stock has had a rough year, falling sharply as investors worried about weaker near-term growth and acquisition integration. That kind of weakness can create opportunity when the core business remains profitable.
Its third-quarter fiscal 2026 results were mixed, so this isn’t a clean momentum story. Revenue fell 9% year over year to $32.7 million. Recurring revenue slipped 4% to $23.7 million. Adjusted EBITDA dropped 30% to $9.7 million, and net income fell 38% to $6 million, or $0.07 per share. Still, this remains a profitable software company with a market cap around $319 million. Its trailing P/E ratio sits near 20, while the forward multiple looks closer to 14. The risk is that the transition takes longer than expected. The upside is that recurring software revenue can become attractive again once growth steadies.
ATS
ATS (TSX:ATS) is the industrial pick of the group. The Cambridge-based company builds automation systems for industries such as life sciences, food and beverage, consumer products, energy, and transportation. It helps customers automate complex production lines, which fits a world where companies want more efficiency, less labour strain, and better precision. Over the last year, ATS dealt with some noise, including an electric vehicle (EV) customer settlement and a CEO departure. That likely helped keep investors cautious.
Yet the business itself still looks strong. In the third quarter of fiscal 2026, ATS revenue rose 16.7% year over year to $760.7 million. Net income climbed to $30 million from $6.5 million a year earlier. Adjusted EBITDA rose to $105.2 million, and adjusted earnings per share (EPS) improved to $0.48. Order bookings were $821 million, while backlog remained healthy at about $2 billion. The risk is that bookings can wobble if customers delay major projects.
Bottom line
All three stocks come with baggage, but that’s where value usually hides. Fiera Capital stock offers income and a cheap-looking valuation. Computer Modelling Group offers software profitability after a painful reset. ATS offers automation growth with a strong backlog. None is guaranteed a winner. But before the crowd catches on, these three TSX stocks look worth a closer look.
