With inflation trends, central bank moves and energy prices all pulling markets in different directions, many investors are looking for simple ways to focus on what a business can actually generate in cash. The Undervalued Stocks Based On Cash Flows screener does exactly that by highlighting companies where projected cash flows and SWS DCF fair value suggest the share price may not fully reflect underlying potential. For investors who care about paying less than a calculated estimate of value, this can be a useful starting point. This article spotlights 3 stocks from the screener that stand out on those metrics.

Bloom Energy (BE)

Overview: Bloom Energy provides solid oxide fuel cell systems and electrolyzers that allow customers such as data centers, utilities, hospitals and manufacturers to generate on site electricity or hydrogen from fuels including natural gas, biogas and hydrogen, using an electrochemical process rather than combustion.

Operations: Bloom Energy generates about US$2.4b in annual revenue primarily from Electric Equipment, with roughly US$2.1b coming from the United States and the balance from other countries.

Market Cap: US$87.9b

Bloom Energy is attracting attention because its fuel cell power systems and electrolyzers sit at the intersection of surging AI data center demand and the need for resilient, on site energy, backed by a large backlog and expanding partnerships with groups such as Oracle and Nebius. Analysts currently expect strong revenue and earnings growth, and Simply Wall St’s DCF suggests the stock is trading below estimated fair value. Investors also need to weigh a stretched P/S ratio, reliance on external borrowing, recent shareholder dilution and insider selling. Competitive pressure from zero emissions technologies and execution risks around manufacturing expansion mean the story is not risk free. At the same time, the combination of AI infrastructure exposure, policy support and growing service revenues means Bloom Energy remains a notable company in this space.

Bloom Energy’s AI and on site power angle is getting attention, but the real tension is between its cash flow valuation and balance sheet risks. Get the full picture with the DCF valuation analysis for Bloom Energy

Space Exploration Technologies (SPCX)

Overview: Space Exploration Technologies operates three core businesses, providing Starlink satellite broadband to consumers, enterprises and governments, manufacturing and launching reusable rockets for commercial and government missions, and building an AI platform that includes the Grok large language model, AI tools and supporting compute infrastructure.

Operations: Space Exploration Technologies generates most of its revenue from Connectivity at about US$12.2b, with around US$3.8b from its Space segment and roughly US$3.3b from its AI segment.

Market Cap: US$2,015.7b

Investors are closely watching Space Exploration Technologies because it combines a profitable Starlink broadband business with fast growing Space and AI segments that are still pulling group results into heavy losses. Recent figures show earnings are forecast to grow about 65.4% per year, revenue grew 27.3% over the past year and forecasts point to around 36.5% annual revenue growth, while the stock trades at roughly 23.9% below the Simply Wall St fair value estimate and is expected to move into profit within 3 years. Set against that are sizeable losses from Starship and AI data center build outs, a short cash runway funded by sizeable new debt issues and an extremely high P/B multiple that leaves little room if growth or AI ambitions disappoint.

Growth in Starlink, rockets and AI is pulling Space Exploration Technologies in different directions, and the real story sits inside the analyst forecasts for Space Exploration Technologies that could explain whether this valuation gap is a launchpad or a warning sign

Vertiv Holdings Co (VRT)

Overview: Vertiv Holdings Co supplies the power systems, cooling equipment, racks and software that keep data centers, communication networks and other digital infrastructure running, including the AI factories behind services like online banking, video streaming and cloud computing. Its products and services cover everything from uninterruptible power supplies and liquid cooling to lifecycle management, predictive analytics and remote monitoring across more than 130 countries.

Operations: Vertiv generates about US$7.0b in revenue from the Americas, US$2.4b from Asia Pacific and US$2.3b from Europe, the Middle East and Africa, partly offset by around US$1.0b in intersegment sales.

Market Cap: US$125.1b

Vertiv is drawing attention because it sits at the heart of the AI data center build out. The company supplies liquid cooling and power infrastructure that large GPU clusters cannot operate without, supported by a roughly US$15b backlog and strong free cash flow. Earnings growth, high ROE and recent acquisitions in thermal management and liquid cooling services point to a business that is trying to deepen its role in this ecosystem. At the same time, a high P/E multiple, reliance on external borrowing and customer concentration at a handful of hyperscalers introduce real downside risk if AI spending slows or contracts are canceled. For investors focused on cash flow backed value, the gap between valuation worries and the growth and quality story inside Vertiv is a key area of focus.

Vertiv’s AI data center story is accelerating, but the real surprise sits inside the analyst forecasts for Vertiv Holdings Co that could show whether current expectations are masking a far bigger opportunity or a pressure point investors are missing.

The three stocks covered here are just the starting point, as the full Undervalued Stocks Based On Cash Flows screen highlights 133 more companies where cash flow potential and DCF valuation combine into equally compelling stories through the Undervalued Stocks Based On Cash Flows screener. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet profiles and cash flow narratives that matter most to you, so you can focus on the opportunities that best fit your own highest conviction ideas.

Take Control of Your Investment Journey

If Bloom Energy 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.

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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.