Why I’m Pounding the Table on This Dirt-Cheap Canadian Growth Stock

A small-cap Canadian growth stock is a compelling investment opportunity at its current share price.

| More on:
Key Points
  • Firan Technology (TSX:FTG) — TSX30 #16 — has surged (three‑year dividend‑adjusted +577%, YTD +82%) and trades at $21.02 with analyst targets near $29.75 (+41% upside).
  • The aerospace/defense electronics and PCB maker delivered H1 2026 sales +9.2%, adjusted net +26.5% and FCF +181% to $7.6M, with a $193.5M backlog (≈$127M expected to convert by Q2 FY2027).
  • Management targets 15% CAGR through organic growth and M&A, maintains low debt, mitigates U.S. tariff risk via non‑U.S. revenue shift, and calls the current price a compelling entry point.

On September 9, 2026, the Toronto Stock Exchange released the 2026 TSX30 List, the flagship program recognizing Canada’s 30 top-performing growth stocks. Half or 15 in this year’s edition are first-timers. If you’re looking for a dirt-cheap, high-growth opportunity among them, Firan Technology Group (TSX: FTG) is the one. 

FTG ranked 16th, delivering a plus-577% dividend-adjusted price return over three years. My “dirt-cheap” description connotes undervalued relative to its massive growth potential, not a troubled company. At $21.02 per share, the year-to-date gain is nearly 82%. Had you invested $7,000 at year-end 2025, your money would be $12,739 today. Analysts’12-month average price target is $29.75, a potential plus-41.5% upside.

Muscles Drawn On Black board

Source: Getty Images

Positioned for long-term success

Brad Bourne, President and CEO of Firan Technology Group, said, “Over the past several years, FTG has focused on strengthening its position as a leading aerospace and defence electronics company by expanding its global footprint and investing in capabilities that support the long-term growth of our business.” He added that the company is well-positioned for long-term success.

The $529 million company supplies aerospace and defence electronics products and subsystems globally. Firan’s multi-year defence backlogs and record quarterly bookings provides cash flow generation visibility. FTG Circuits and FTG Aerospace, its core operating units, deliver technology-driven solutions.

The first segment provides high-reliability printed circuit boards (PCBs), cockpit displays, and specialized electronic assemblies for defence contractors and leading commercial plane makers Boeing and Airbus. FTG Aerospace designs and manufactures avionic subsystem hardware, including Multifunction Control and Display Unit (MCDU) keyboards. Its aerospace products are used in commercial aero and defence platforms.

Firan’s ultimate objective is to become the dominant player in the PCB industry. The company also aims to deliver a 15% compound annual growth rate (CAGR) and double its growth every five years through organic growth and acquisition.

Thriving business

FTG’s thriving business is reflected in the stock’s performance. In the first half of fiscal 2026 (six months ending May 29, 2026), total sales and adjusted net earnings increased 9.2% and 26.5% year-over-year, respectively, to $100 million and $8.6 million. Notably, free cash flow (FCF) surged 181.3% to $7.6 million compared to the same period in 2025.

By balancing sales between commercial aerospace and defence customers, the Toronto-based company can maintain stable revenue streams as each market goes through its normal cycles. Thus far in fiscal 2026, FTG Circuits accounts for 65% of total revenue.

As of May 29, 2026, the backlog is $193.5 million. Firan expects to convert 65.7%, or about $127 million, to revenue by the end of Q2 fiscal 2027, with the balance in ensuing years. Bourne said FTG reduces U.S. tariff risk by growing non-U.S. revenue for non-U.S. sites. The company also moves non-U.S. customer orders to non-U.S. facilities where possible.

Strong foundation for future growth

Firan Technology, a fast-rising small-cap stock, presents a dynamic growth story. The company plans to capitalize on industry tailwinds and strong end-market demand. FTG’s growth potential and backlog visibility are high, while debt risk is low.

According to Bourne, top-line growth drives FTG’s profitability. It should also strengthen its long-term financial stability. The current share price is a good entry point, if not a steal.  

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Firan Technology Group. The Motley Fool recommends Boeing. The Motley Fool has a disclosure policy.

More on Investing

Hand Protecting Senior Couple
Dividend Stocks

The Stock You Could Hand Down to Your Grandkids

Brookfield Infrastructure could be one of the quality stocks that could be handed down to your grandkids.

Read more »

ETFs can contain investments such as stocks
Investing

Here Are 3 Canadian ETFs I’d Use to Make Money in My TFSA for Years

Looking to build wealth in your TFSA? These three Canadian ETFs offer U.S. growth, monthly income, and international diversification.

Read more »

dividend growth for passive income
Dividend Stocks

2 Canadian Dividend Stocks That Increase Payments Over Time

These Canadian stocks regularly raise dividends and are a reliable investment to generate a growing income stream.

Read more »

dividend stocks are a good way to earn passive income
Dividend Stocks

3 TSX Stocks to Buy With $10,000 for Reliable Income

Given their resilient business models, reliable cash flows, and consistent dividend payouts, these three TSX stocks are ideal for income-seeking…

Read more »

alcohol
Investing

Quiet Millionaires Don’t Chase Every Rally: Here’s What They Do With $10,000

Quiet wealth is usually built with a plan, diversification, low fees, and patience, not by chasing whatever is hot.

Read more »

Senior uses a laptop computer
Retirement

Retirees: 2 TSX Dividend Stocks You Can Probably Hold for 10 Whole Years

These TSX dividend socks have sustainable payouts and are better positioned to deliver reliable income and growth over time.

Read more »

woman considering the future
Investing

Why This Canadian Stock Could Be the Best-Kept Secret on Wall Street

Air Canada (TSX:AC) stock could be a mid-cap growth star that's hiding in plain sight on the TSX.

Read more »

pregnant mother juggles work and childcare
Bank Stocks

Investing Doesn’t Have to Be Complicated – This 1 Stock Is Proof

TD Bank stock has been a reliable and resilient performer, creating long-term wealth for investors.

Read more »