Cooling US consumer inflation expectations and softer wage growth have shifted attention back to cash generation and valuation discipline. When price pressure is less of the story, the gap between what a stock earns in cash and what the market pays for it can stand out more clearly. This article highlights 3 stocks from the Undervalued Stocks Based On Cash Flows screener that currently screen as undervalued on cash flow.

The three stocks below are just a starting sample. The full screen surfaced 126 more companies with equally cash focused stories that are not covered here.

Head straight into the Undervalued Stocks Based On Cash Flows screener to identify, filter and analyze the ideas that best match your own value and cash flow priorities.

Fluence Energy (FLNC)

Fluence Energy provides large scale battery storage systems and grid software that help utilities and large power users manage renewable energy and rising power demand. The company generates essentially all of its revenue, about US$2.6b, from batteries and battery systems that combine hardware, software and digital intelligence. Fluence Energy has a market cap of roughly US$2.4b, putting it in mid cap territory.

Fluence Energy sits at the intersection of AI data center growth and grid reliability, with a US$6.4b backlog and fresh products like Smartstack that target dense, utility scale storage and data center demand. At the same time, recent guidance cuts, ongoing losses and heavy reliance on external funding show that execution risk is real, especially while tariffs, production delays and competition weigh on margins. For investors who care about cash generation and valuation discipline, the mix of a large contracted pipeline, strong revenue forecasts and share price volatility makes Fluence Energy a stock that requires patience as the story develops and demands careful attention to balance sheet strength and policy shifts.

Fluence Energy sits on a US$6.4b backlog while losses and funding needs keep many investors cautious. Get the full context from the 3 key rewards and 1 important major warning sign which could reset how you view the stock’s risk reward trade off.

Build your own cash flow and backlog shortlist

Fluence Energy and the two other stocks in this list all came from a single Simply Wall St screener, but the real value is in creating filters that match how you think about cash flows, balance sheets and future pipelines. Use our customizable Screener to shape your own set of opportunities, or lean on the curated themes across our Investing Ideas.

Dynatrace (DT)

Dynatrace runs an AI powered observability platform that helps large organizations monitor and secure their applications, infrastructure and digital experiences across cloud and on premises systems. It generates essentially all of its US$2.1b in revenue from internet software and services, backed by a global customer base across sectors such as banking, government and retail. The stock currently carries a market cap of about US$14.1b, putting Dynatrace firmly in mid to large cap territory.

Investors watching cash flow and valuation may find Dynatrace interesting because its AI focused observability platform is tightly embedded in enterprise IT, with recurring subscription revenue and contract wins that support long term visibility. Recent results showed strong annual recurring revenue growth and rising consumption, yet profit margins have compressed from 27.7% to 7.2% and the P/E multiple sits well above software peers, which raises questions about how quickly earnings can catch up. Add in funding that relies on external borrowing, competitive pressure from hyperscalers, a CFO transition and an active buyback program, and Dynatrace becomes a stock where the balance between quality, growth and price deserves closer inspection.

Dynatrace’s recurring revenue story and compressed margins suggest something important is shifting in how the market prices its quality and growth. See how the analyst forecasts for Dynatrace lines up with that premium P/E and what factors could challenge it next.

Clear Secure (YOU)

Clear Secure runs an identity verification platform under the CLEAR brand that helps travelers and enterprises move through security checks and digital ID processes more quickly, mainly in US airports and related touchpoints. Its services range from the CLEAR Plus airport subscription and TSA PreCheck enrollment to CLEAR1 for businesses and digital IDs in mobile wallets, with a market cap of about US$7.2b.

Clear Secure sits at the crossroads of rising travel demand and growing use of biometric identity, which is already feeding through into free cash flow, reported ROE and recent revenue and earnings beats. Investors who care about cash generation and valuation may be drawn to a stock flagged as trading roughly 32.3% below one estimate of fair value. However, insider selling, margin pressure and reliance on external funding indicate that the story involves risks. The next phase of pricing changes, corporate memberships and TSA PreCheck expansion will be important in assessing whether current growth and cash metrics can hold up over time.

Clear Secure’s cash rich airport story and noted valuation gap suggest the stock’s next chapter is not fully priced in yet. Read the 2 key rewards and 2 important warning signs while one key risk quietly reshapes the upside case.

Seeking Fresh Alternatives Before They Fly

Markets can move quickly and potential breakout stories often sit under the radar at first. Review these fresh stock ideas before momentum is widely noticed, then decide how they may fit your own strategy.

• Identify companies that may be turning resilience into quieter momentum by scanning the 79 resilient stocks with low risk scores while they may still be less followed and pricing may reflect lower volatility.
• Explore structural shifts in digital assets by checking the curated 20 cryptocurrency and blockchain stocks before sentiment changes and market conditions make entry points less flexible.
• Consider positioning for possible changes in materials markets by reviewing the hand picked 28 best rare earth metal stocks while valuations may still reflect earlier demand expectations.

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.