Central banks are keeping interest rates restrictive as they try to contain stubborn inflation, which keeps borrowing costs higher and puts pressure on company valuations. That is pushing many investors toward the sidelines. It also creates a window for those willing to look at cash flow. This article walks through three stocks from the Undervalued Stocks Based On Cash Flows screener that currently trade below SWS fair value estimates.

The three stocks that follow are just a starting sample, since the full Undervalued Stocks Based On Cash Flows screen surfaced 812 more companies with cash flow stories that are not covered here but may warrant a closer look. To identify and analyze the ideas that best fit your style, head straight to the Undervalued Stocks Based On Cash Flows screener.

Dutch Bros (BROS)

Dutch Bros is a drive thru coffee chain in the United States that focuses on company operated shops selling coffee, Blue Rebel energy drinks and other beverages, which is the main source of cash flow behind its inclusion in the Undervalued Stocks Based On Cash Flows screener. In 2025, company operated shops generated about US$1.7b of revenue compared with roughly US$141 million from franchising and other activities. The stock has a market cap of about US$9.1b.

For investors watching cash flow, Dutch Bros operates a fast growing drive thru network where most revenue and cash generation come from company operated shops. Recent results showed higher earnings and wider margins at the store level, while new products such as Mist energy drinks and expanded food pilots aim to lift ticket sizes and repeat visits. The company is also taking on more locations through acquisitions such as Salad and Go sites, which could affect the pace of cash flow growth. The trade off is higher funding needs, a rich P/E multiple, and pressure from labor costs and competition. That combination of factors is why this coffee chain may warrant a closer look in a cash flow focused screen.

Dutch Bros is building a high revenue drive thru network, but the real story sits inside its cash generation, funding needs and rich P/E. Get the fuller picture in the DCF valuation analysis for Dutch Bros, including what the current expansion pace might be masking.

Build your own cash flow shortlist around Dutch Bros

Dutch Bros and the two other stocks in this list all came from a single Simply Wall St screener, but the real edge is in setting your own rules. Use our flexible Screener to mix cash flow, valuation and quality filters that fit your style, or lean on the groundwork already done in our curated Investing Ideas.

Cerebras Systems (CBRS)

Cerebras Systems is an AI infrastructure company that builds wafer scale chips and rack scale systems for training and inference workloads, giving it direct exposure to the cash flow potential of large AI compute contracts that underpin the Undervalued Stocks Based On Cash Flows screener. The company currently generates about US$681 million in revenue from its semiconductor based AI compute platform and related systems, all reported within a single segment, and has a market cap of roughly US$52.3b. Cerebras serves hyperscalers, foundation model labs, enterprises and Sovereign AI projects across the United States and EMEA.

Investors looking at Cerebras Systems are really weighing whether its wafer scale AI platform can turn forecast growth into durable cash flows. The company is unprofitable today and relies on external funding, yet it has a large forward backlog, fast growing cloud and inference revenue and partnerships with OpenAI, AWS and others that are already feeding recurring workloads onto its hardware. Forecast revenue and earnings growth are strong and Simply Wall St’s DCF points to a large gap between price and estimated fair value. However, there are risks around customer concentration, insider selling and execution on capacity build outs. If Cerebras converts its backlog and CS-4 rollout into improving free cash flow over the next few years, the current discount to fair value could look very different.

Cerebras Systems is working to convert a swelling AI backlog into real cash, not just headlines. See how the growth story compares with funding needs and customer risk in the 3 key rewards and 2 important warning signs (1 is major!)

Clear Secure (YOU)

Clear Secure runs the CLEAR identity platform that powers airport fast lanes, subscription based CLEAR Plus, mobile ID tools and enterprise offerings that all feed into recurring cash flows, which is why it fits the Undervalued Stocks Based On Cash Flows screener. The company generates about US$1.0b in revenue from secure biometric identity verification in the United States and has a market cap of roughly US$6.0b.

Clear Secure offers a mix of airport subscriptions, mobile IDs and enterprise identity tools that together create recurring cash flows investors can model with some confidence. Analysts see room for higher earnings over time, yet the stock trades well below Simply Wall St’s DCF estimate of fair value, which signals the cash flow story may not be fully priced in. The catch is that margins have recently compressed, insider selling has drawn attention and new leadership plus pricing changes could upset member growth if misjudged. For investors willing to weigh those trade offs, the combination of strong free cash flow, a growing user base and an expanding identity platform makes Clear Secure a company that deserves a closer look in a cash flow focused screen.

Clear Secure’s recurring cash flows and expanding identity platform could be masking a bigger story around pricing power and member growth. See what the Simply Wall St team is watching in the analysis report for Clear Secure

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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.