Inflation is cooling in several countries, which gives central banks more room to keep interest rates steady or ease gradually. That sort of backdrop often shifts attention back to company fundamentals, especially cash generation. When prices feel calmer, discounted cash flow based stock picks can look more appealing. This article highlights three stocks from the Undervalued Stocks Based On Cash Flows screener that currently appear worth a closer look.
The stocks covered below are just a sample, with the full screen surfacing 34 more companies that also have cash flow profiles and valuations that may interest value focused investors. To identify and analyze the opportunities that best fit your own criteria, head straight to the Undervalued Stocks Based On Cash Flows screener.
Kraken Robotics (TSXV:PNG)
Kraken Robotics is a marine technology company that supplies sonar and optical sensors, SeaPower deep sea batteries, and underwater robotic equipment for military and commercial customers worldwide. It currently earns about CA$66 million from product sales and CA$41 million from services, reflecting a business that leans more toward hardware and systems than pure services. The market values Kraken Robotics at roughly CA$1.9b, which puts it firmly in small to mid cap territory.
Investors looking at Kraken Robotics are really looking at a specialist supplier to fast evolving defense and offshore energy markets. The company is guiding for a higher mix of product revenue after the CA$615 million Covelya acquisition. Analysts expect strong revenue and earnings growth and see room for the stock price to move closer to their consensus target. At the same time, Kraken Robotics is still loss making, has relied on new debt facilities and has seen insider selling and leadership changes this year. The balance between those growth drivers and the funding and execution risks is what makes this story worth watching closely.
Kraken Robotics sits at the crossroads of defense demand and offshore tech; yet the real story is how cash flows stack up against those fresh risks. See what the DCF valuation analysis for Kraken Robotics might be signaling before the next chapter breaks
Build your own cash flow shortlist around Kraken Robotics
Kraken Robotics and the other two stocks in this article all came from a single screen, which is only a starting point. Use our flexible Screener to blend filters like valuation, cash flows, balance sheet strength and risks so you can shape a watchlist that fits you, or lean on our curated Investing Ideas for ready made starting points.
Celestica (TSX:CLS)
Celestica is a large Canadian electronics manufacturing and supply chain partner that designs, builds and manages complex hardware platforms for original equipment makers and cloud providers, including hyperscalers. It generates about US$12.3b in revenue from its Connectivity & Cloud Solutions segment and US$3.3b from Advanced Technology Solutions, reflecting a strong tilt toward data center and networking work. The market currently values Celestica at roughly CA$51.0b.
Celestica sits at the heart of the AI infrastructure build out, with hyperscaler demand contributing to growth in its cloud and networking business and supporting its design pipeline. Earnings growth, rising margins and high returns on equity have attracted attention. However, heavy reliance on a handful of large AI and cloud customers and the need for ongoing capacity investment create meaningful concentration and execution risks. The recent multi billion dollar equity raise and higher 2026 and 2027 revenue guidance indicate how aggressively Celestica is investing in this cycle. A key consideration for investors is how durable that momentum and cash generation will be over the next few years.
Celestica’s accelerating AI hardware push and heavy hyperscaler exposure can look like a perfect combo for cash generation. The real twist sits inside the analyst forecasts for Celestica and a single concentration risk that could change everything.
SSR Mining (TSX:SSRM)
SSR Mining is a precious metals producer that acquires, explores and develops gold and silver assets across the United States, Canada, Argentina and previously Türkiye. It currently generates about $620 million from Marigold, $581 million from Cripple Creek & Victor, $570 million from Puna and $162 million from Seabee, giving it a diversified portfolio of producing mines. The stock carries a market value of roughly CA$9.0b.
SSR Mining has quickly shifted from a complex global footprint to a focused Americas producer with a debt free balance sheet and nearly $1.8b in cash after exiting Türkiye. That firepower, combined with high margins, strong recent earnings, and ongoing buybacks and dividends, has attracted analyst attention, particularly given that the stock is priced below some estimates of its cash flow value. On the other hand, gold and silver prices, permitting timelines and the cost of bringing new projects such as Buffalo Valley or Hod Maden royalty cash flows into production can still be difficult to predict. The key question is whether the current valuation fully reflects the company’s refocused asset base and its plan to deploy that cash position in a way that supports lasting shareholder returns.
SSR Mining’s cash rich, debt free reset after exiting Türkiye could be masking an underappreciated next phase for its Americas portfolio. The real clue might sit inside the analysis report for SSR Mining
Seeking Fresh Alternatives Beyond These Three
Some stocks are already breaking out while others build quiet momentum under the radar for now. Before the crowd gets fully caught in, scan fresh ideas and act now.
- Spot income workhorses with staying power by checking out a curated batch of 5 dividend fortresses that aim to keep cash coming in while prices keep moving.
- Zero in on resilient balance sheets and steady cash engines by running the list of solid balance sheet and fundamentals (12 results) before these under the radar compounders stop looking overlooked.
- Ride the AI build out with real earnings behind it by reviewing 71 profitable AI stocks that aren't just burning cash before the strongest operators stop trading like early stage experiments.
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.
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