Central banks are keeping interest rates restrictive as they try to squeeze out lingering inflation. That keeps funding costs higher and puts more pressure on companies that rely heavily on borrowing. It also shines a spotlight on businesses that generate solid cash flows and still trade below estimated fair value. In this context, this article walks through three stocks from the Undervalued Stocks Based On Cash Flows screener that stand out right now.

The three stocks covered below are just a sample, as the full screen identifies 772 more companies with similarly compelling cash flow stories that are not discussed in this article. If you want to go broader and identify your own highest conviction ideas, head straight to the Undervalued Stocks Based On Cash Flows screener.

Vestas Wind Systems (CPSE:VWS)

Vestas Wind Systems is a Danish company that designs, manufactures, installs, and services wind turbines across onshore and offshore projects worldwide. It generates most of its revenue from Power Solutions at about €16.7b, with a further €3.6b coming from its Service segment, which provides maintenance contracts and spare parts. The company is a large player in global renewables with a market cap of roughly DKK 208.1b.

Investors looking at Vestas Wind Systems are getting exposure to a major wind turbine manufacturer that is seeing stronger order momentum, a growing backlog and higher earnings guidance out to 2026. This is supported by policy support for renewables and grid upgrades in key markets. The company also has a sizeable and higher margin service business that management is working to improve further, alongside buybacks and raised earnings guidance that reflect confidence in cash generation. At the same time, you need to weigh ongoing pressure from offshore ramp up costs, pricing pressure from competitors and recent insider selling, which keep execution risk very real and make the recent earnings strength worth examining more closely.

Vestas Wind Systems has accelerating orders, a growing backlog and a higher margin service engine that many investors may still be underestimating. Get the full picture, including how current execution risks fit into the story, in the analyst forecasts for Vestas Wind Systems.

Build your own cash flow shortlist around Vestas Wind Systems

Vestas Wind Systems and the other two stocks in this article all surfaced from a single screener, but the real edge comes from shaping filters around your own process. Use our customisable Screener to mix valuation, cash flow, quality and risk filters, or take a shortcut by starting with our curated Investing Ideas.

AECOM (ACM)

AECOM is a Dallas based infrastructure consulting company that advises, designs and manages major projects for governments and businesses across transport, water, energy, facilities and environmental markets worldwide. Most of its revenue comes from the Americas segment at about US$11.8b, with a further US$3.6b from its International segment, while its AECOM Capital arm is currently small at under US$1 million in reported revenue. The stock has a market cap of roughly US$8.6b, which puts it in mid to large cap territory.

Investors looking at AECOM are getting a pure play on global infrastructure, climate resilience and data center build out, backed by a record backlog and a pivot toward higher margin consulting, digital and AI enabled services. The recent US$337 million charge on a legacy project and the cut to free cash flow guidance highlight real execution and funding risks, especially given reliance on external borrowing, yet they also help explain why the stock screens as undervalued relative to its cash flow potential and analyst targets. Investors who want exposure to long dated public infrastructure spending and are willing to accept short term margin pressure and headline noise may find AECOM worth a closer look.

AECOM’s record backlog and push into higher margin consulting and AI enabled services could be masking a much bigger story. Walk through the full 4 key rewards and 2 important warning signs (1 is major!) to see what the latest charge and funding needs might really signal.

Advanced Energy Industries (AEIS)

Advanced Energy Industries supplies precision power conversion and control systems that sit at the heart of semiconductor tools, AI data centers, industrial equipment and medical devices. All of its roughly $2 billion in revenue comes from power electronics conversion products, and the stock carries a market cap of about $13.1b, which puts it firmly in large cap territory.

Advanced Energy Industries provides direct exposure to AI data centers and advanced semiconductor manufacturing at a time when earnings have rebounded and margins have improved to 10.8%. Recent record quarterly revenue, raised 2026 guidance and a new Thailand factory coming online indicate that management is leaning into demand, while a dividend introduction adds another angle for potential returns. The catch is meaningful reliance on a handful of large customers and higher risk funding, which could be challenging if spending or credit conditions tighten. For investors comfortable with those trade offs, this combination of growth exposure, cash flow potential and positive analyst views may be appealing.

Advanced Energy Industries sits at the intersection of AI data centers and advanced semiconductors, yet many investors may be missing the broader earnings and cash flow story that could be forming. Walk through the analyst forecasts for Advanced Energy Industries and consider what the current guidance and customer concentration might really be indicating.

Seeking Fresh Alternatives Before They Fly

Markets move fast and the next breakout list rarely stays under the radar for long. Scan these fresh ideas before the crowd catches on and consider them while they remain less widely followed.

• Spot resilient potential compounders by running the list of solid balance sheet and fundamentals (429 results) so you focus on businesses with sturdier finances while it still matters.
• Track where income focused capital could head next by scanning the 439 dividend fortresses while yields and prices still look appealing.
• Position ahead of a possible energy infrastructure momentum shift by reviewing the curated 36 power grid technology and infrastructure stocks before these stories get fully reflected in prevailing prices.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.