With inflation, interest rates and geopolitics all pulling markets in different directions, reliable cash generation has become a key focus for many investors. The Undervalued Stocks Based On Cash Flows screener targets companies where current prices sit below an internally assessed fair value using SWS DCF valuation, even as those businesses show promising cash flow potential. That combination can be appealing if you are looking for value-oriented ideas that are grounded in fundamentals rather than sentiment. In this article, you will see 3 stocks from this screener that stand out for further research.

Tenable Holdings (TENB)

Overview: Tenable Holdings is a cybersecurity company that helps organizations understand and reduce their exposure to cyberattacks by monitoring vulnerabilities across cloud, identity, operational technology, AI workloads and traditional IT systems. Its platforms use data, automation and AI to give security teams a single view of risk and help prioritize fixes before breaches occur.

Operations: Tenable generates about US$1.0b in revenue from Security Software & Services, with sales spread across the United States, Europe, the Middle East and Africa, Asia Pacific and the rest of the Americas.

Market Cap: US$4.5b

Tenable Holdings stands out in the cash flow screener because it sits at the intersection of AI fueled cyber risk and a growing push toward proactive exposure management, while still being priced below some fair value estimates based on discounted cash flows. The company recently swung to a small profit, raised full year revenue guidance to over US$1.06b and continues to gain traction with its Tenable One platform, supported by partnerships such as FedRAMP High authorization and new AI collaborations. At the same time, reliance on external borrowing, past losses and heavy R&D investment mean execution needs to stay tight for the story to hold together. This combination is what makes Tenable an interesting case study for investors focused on cash generation and quality growth.

Tenable’s swing to profit and US$1.0b in revenue paints a stronger picture than many investors appreciate, but the real story sits in how future cash generation stacks up against its current pricing in the DCF valuation analysis for Tenable Holdings, and one subtle assumption there could change how you view the whole setup.

Mobileye Global (MBLY)

Overview: Mobileye Global develops the hardware, software and data systems that power advanced driver assistance and autonomous driving, supplying car makers and fleet operators with camera based safety features today and end to end robotaxi and self driving solutions under development for tomorrow.

Operations: Mobileye Global generates about US$2.0b in revenue, with roughly US$2.0b from its Mobileye segment and US$38m from Other activities, and sells into major auto markets including the USA, China, Germany and South Korea.

Market Cap: US$8.0b

Mobileye Global sits in the cash flow screener because it couples a large ADAS footprint with an ambitious plan to layer on higher margin robotaxi services. The stock trades below some fair value estimates based on discounted cash flows and analyst targets. The company supplies core safety technology to global automakers and is planning a vertically integrated US robotaxi fleet from 2027 using Mobileye Drive and Moovit. If this plan is successful, it could turn today’s losses and goodwill impairment into a very different earnings mix over time. The flip side is clear. Heavy reliance on auto production cycles, exposure to tariffs and China demand, and high debt funding mean execution risk is real. How that balance plays out is what makes Mobileye worth a closer look for cash flow focused investors.

Mobileye’s large ADAS footprint and US$2.0b in revenue are only half the story. The key question is how those cash flows intersect with where expectations are set in the DCF valuation analysis for Mobileye Global

Generac Holdings (GNRC)

Overview: Generac Holdings is an energy technology company that supplies backup generators, home energy storage, smart home devices and industrial power systems that keep homes, businesses and data centers running when the grid cannot. Its products range from small portable units to large natural gas and diesel generators, battery systems and microgrids, supported by software and monitoring services.

Operations: Generac generates the bulk of its revenue in the United States at about US$3.6b, with roughly US$803m from international markets and a small segment adjustment.

Market Cap: US$13.9b

Generac Holdings is attracting attention because it sits at the crossroads of rising data center power needs, more frequent extreme weather and growing interest in home and commercial energy resilience. It is still flagged by cash flow models as trading below an estimated intrinsic value. Recent contracts with hyperscale data center operators, a strong commercial and industrial backlog and higher EBITDA margin guidance indicate the business is leaning into higher quality, more recurring revenue streams, even as residential solar and clean energy remain a drag. Earnings have been volatile and the P/E is high, so investors need to weigh execution and regulatory risks carefully. However, the combination of data center demand, grid stress and robust cash generation metrics makes Generac a stock worth studying in more detail for this screener’s criteria.

Generac’s data center momentum and grid stress story feels bigger than the headline, and the real twist sits inside the 3 key rewards and 1 important warning sign that quietly reframes where the long term opportunity and pressure points really sit

The three stocks in this article are just a starting point, and the full Undervalued Stocks Based On Cash Flows screener currently highlights 687 more companies with cash flow stories and pricing gaps that could be just as compelling as what you have seen so far in the Undervalued Stocks Based On Cash Flows screener. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you so you can narrow that broader universe down to your highest conviction ideas.

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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.