With inflation signals mixed and central banks keeping rates tight, many investors are searching for stocks where cash generation looks solid but prices still sit below estimated fair value. That is exactly what the Undervalued Stocks Based On Cash Flows screener is built to find. It focuses on companies that SWS DCF analysis views as undervalued on a cash flow basis, which can appeal if you want value exposure without making a call on any single sector. This article highlights three stocks from the screener that stand out on those cash flow and valuation grounds.

Siemens Energy (XTRA:ENR)

Overview: Siemens Energy is a global energy technology company that supplies gas and steam turbines, grid equipment, wind turbines and long term service and digital solutions that help utilities, industry and infrastructure customers generate, transport and store electricity.

Operations: Siemens Energy generates most of its revenue from Gas Services (€12.8b), Grid Technologies (€12.1b) and Siemens Gamesa wind (€10.1b), with additional contributions from Transformation of Industry (€5.7b) and broad geographic exposure led by Europe, C.I.S., Africa and Middle East excluding Germany (€13.2b), the United States (€10.4b) and Germany (€9.6b).

Market Cap: €118.0b

Siemens Energy is attracting attention because it links recent earnings momentum with exposure to long running themes such as electrification, data center power demand and the energy transition. Revenue and earnings growth have been very large recently, and forecasts point to double digit growth with improving profit margins and a high forecast return on equity. At the same time, analysts see the stock trading below their fair value estimates, although the wide spread in price targets shows that views are divided. The turnaround of the Siemens Gamesa wind segment and the reliance on external borrowing remain key risks. If those issues are managed well, the combination of a large order book and the company’s earnings profile could be significant for long term investors.

Siemens Energy’s earnings momentum and big order book have investors talking, but the real story could lie in how analysts see that trajectory playing out. Get the analyst forecasts for Siemens Energy to see what might be hiding in the projections.

Corning (GLW)

Overview: Corning is a materials and technology company that supplies optical fiber and cables, display glass, specialty glass, ceramics, and lab products that sit behind everything from AI data centers and telecom networks to TVs, smartphones, cars, and pharmaceutical packaging.

Market Cap: US$114.2b

Corning gives investors exposure to several long term themes in one place, including AI data centers, fiber connectivity, solar, and high performance materials. Management is pushing its Springboard plan to lift annual sales materially over the next few years, backed by demand for optical products tied to Gen AI and solar capacity investments. Recent partnerships with large technology and cloud companies underline its role in AI infrastructure. At the same time, the stock has been volatile after softer guidance and carries risks around high debt, reliance on non GAAP metrics, trade policy, and growing competition. For investors who can tolerate some bumps, the combination of cash flow focus, buybacks, and exposure to major technology and energy shifts makes Corning a story to watch closely.

Corning’s push into AI data centers, solar and high performance materials could be masking an even bigger story about its cash generation and debt load. Get the Corning financial health report for the twist most investors are missing

Klaviyo (KVYO)

Overview: Klaviyo is a cloud software company that helps consumer facing businesses use their own customer data to run targeted marketing, messaging and support across email, SMS, social channels and customer service tools. Its platform combines customer relationship management, automation and real time analytics so brands can personalise communication and track what actually drives sales.

Operations: Klaviyo generates about US$1.31b of revenue from internet software, with most sales coming from the United States alongside contributions from the United Kingdom, other EMEA, Asia Pacific and the rest of the Americas.

Market Cap: US$5.3b

Klaviyo may be worth a closer look for investors interested in software linked to online sales, data and AI. The company operates in a large, global market and is expanding into AI agents, social data and customer support tools, which may increase how much existing clients spend on the platform. Analysts currently model revenue and earnings growth and view the stock as trading below their cash flow based fair value estimates, and there is also a US$500m buyback in place. On the other hand, Klaviyo is still early in its profitability journey, faces competition from larger software suites and depends on partners such as Shopify. That combination of potential upside and execution risk is central to how investors may assess the opportunity.

Klaviyo’s expanding AI and data toolkit could reshape how its customers spend on the platform, yet the market may not be pricing that shift. Get the analyst forecasts for Klaviyo to see what expectations might be missing.

The three stocks in this article are just a starting sample, as the full Undervalued Stocks Based On Cash Flows screener has uncovered 768 more companies with cash flow stories that could be just as compelling as Siemens Energy, Corning and Klaviyo. Identify and analyze the specific catalysts, cash flow profiles and narratives that matter most to you by running the Undervalued Stocks Based On Cash Flows screener.

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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.