With central banks still tightening or holding rates, inflation pressures mixed across regions, and growth signals pointing in different directions, many investors are looking for stocks where cash flows do most of the talking. The Undervalued Stocks Based On Cash Flows screener focuses on companies that SWS DCF models suggest trade below fair value based on their cash flow potential, rather than headline sentiment. That can help you concentrate on what a business generates in cash terms, not just share price noise. In this article, you will see 3 stocks from the screener that stand out on this cash flow valuation theme.

Bloom Energy (BE)

Overview: Bloom Energy is a clean power company that builds and installs solid oxide fuel cell systems, turning natural gas, biogas or hydrogen into electricity on site for customers such as data centers, hospitals, universities and manufacturers, and also sells electrolyzers to produce hydrogen. Its fuel flexible, modular units are used by utilities and large power users that want more control over reliability and emissions.

Operations: Bloom Energy generates about US$2.4b in revenue, all from electrical equipment, with around US$2.1b from the United States and roughly US$309m from other countries.

Market Cap: US$74.0b

Investors watching the Undervalued Stocks Based On Cash Flows screener might be drawn to Bloom Energy because its on site power systems sit at the heart of the AI data center build out, helped by large partnerships with Oracle, Nebius and Brookfield and a backlog reported at around US$20b. Recent results show revenue up about 130% year over year and a shift into profitability. Yet the stock still trades below the Simply Wall St DCF estimate, which suggests some cash flow upside is already modeled. The catch is that Bloom Energy still depends heavily on natural gas, carries high external borrowings and has seen shareholder dilution, so the key question is whether AI led demand and margin progress can stay ahead of those risks.

Bloom Energy’s AI driven backlog, new profitability and DCF gap suggest the story may be less about hype and more about cash flow reality, but the real twist sits in the 3 key rewards and 4 important warning signs

Western Digital (WDC)

Overview: Western Digital designs and sells hard disk drives and broader data storage solutions that sit behind everything from cloud data centers and AI workloads to home and office backup. It supplies internal and external drives, data center platforms, and network-attached storage to large computer manufacturers, hyperscale cloud providers, and retail channels worldwide.

Operations: Western Digital generates about US$11.8b in revenue, primarily from hard disk drives, with reported geographic revenue including around US$2.1b from Europe, the Middle East and Africa.

Market Cap: US$194.0b

Western Digital is on many investors’ radar because its high capacity ePMR and UltraSMR drives are closely tied to AI data center build outs. Recent analyst commentary highlights strong demand, tight supply and improving pricing, while the stock screens as undervalued against estimated cash flow. At the same time, earnings quality is mixed, funding leans on external borrowing, and the company relies heavily on a small group of hyperscale customers, so any shift in their storage approach could matter a lot. If you want to understand how those growth drivers, balance sheet moves and customer risks stack up, the real detail sits in the 3 key rewards and 2 important warning signs (1 is major!)

Western Digital’s AI storage story looks powerful, but the real tension is how that opportunity lines up against customer concentration and debt. Get the full picture in the 3 key rewards and 2 important warning signs (1 is major!)

Space Exploration Technologies (SPCX)

Overview: Space Exploration Technologies, commonly known as SpaceX, runs three big businesses under one roof: satellite broadband via Starlink, reusable rockets and launch services, and a vertically integrated AI platform that includes the Grok large language model, the X platform and its own compute infrastructure.

Operations: SpaceX generates about US$19.3b in revenue, with roughly US$12.2b from Connectivity, US$3.8b from Space launches and services, and US$3.3b from AI.

Market Cap: US$2.1t

Investors are watching SpaceX because it sits at the crossroads of three themes: global connectivity, commercial space and AI compute. It is still unprofitable and relies heavily on external borrowing. Starlink is the profit engine today, while rockets, Starship and the AI segment require large upfront spending that weighs on earnings, even as SpaceX trades about 34.2% below the Simply Wall St fair value estimate with revenue and earnings both forecast to grow quickly. Add in record retail interest around the largest IPO in history, potential index inclusion, government contracts and illiquid trading, and this is a company where the upside story is clear but the full risk and reward picture needs closer inspection.

SpaceX’s mix of Starlink cash generation, heavy Starship and AI spending, and a share price that sits well below one fair value estimate is only half the story. The real kicker sits inside the 3 key rewards and 1 important major warning sign

The three stocks highlighted here are only a sample of what screens well on cash flow, with the full Undervalued Stocks Based On Cash Flows screener surfacing 127 more companies that pair discounted valuations with equally compelling cash flow stories. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet traits and cash flow narratives that matter to you, so you can focus on the highest conviction ideas within that broader group.

Take Control of Your Investment Journey

If Space Exploration Technologies or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Before They Fly?

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• Spot cash rich companies that hold up when others wobble by reviewing the curated list of solid balance sheet and fundamentals (48 results) before they gain wider attention.
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• Target companies with stronger financials in a volatile corner of the market by working through the hand picked 23 elite penny stocks with strong financials before the broader market focuses on them.

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.