MasTec Stock And 2 Cash Flow Backed Industrial Picks Trading Below Fair Value

Market headlines are full of inflation questions, rate-watch updates and energy price swings. That mix is pushing investors to pay closer attention to cash flows rather than short term mood swings in share prices. The Undervalued Stocks Based On Cash Flows screener focuses on companies where discounted cash flow estimates from SWS suggest the market price sits below fair value. That can appeal if you want solid cash generation at a reasonable entry point. In this article you will see three stocks from this screener that stand out based on their cash flow support and valuation characteristics.

MasTec (MTZ)

Overview: MasTec is an infrastructure engineering and construction company that designs, builds, installs, and maintains critical assets such as communications networks, renewable energy projects, pipelines, and power delivery systems across the United States and Canada.

Market Cap: US$25.7b

MasTec provides exposure to several long term themes in one stock, including grid upgrades, renewable energy, data centers, and fiber build outs, supported by a record US$21.4b backlog and the recent acquisition of The Superior Group for data center and mission critical work. The company carries meaningful debt, operates with relatively thin profit margins, and relies on large customers and policy support, so execution and project timing are important and detailed analysis of these factors can be crucial for investors.

MasTec’s record US$21.4b backlog and new data center exposure suggest a story the market may not fully be pricing. Get the full picture with the 4 key rewards and 2 important warning signs

Flex (FLEX)

Overview: Flex is a global manufacturing and supply chain partner that designs, builds, and assembles hardware for data centers, communications, automotive, healthcare, industrial and power equipment, and consumer products, helping large customers bring complex electronics and infrastructure to market at scale across the Americas, Asia, and Europe.

Market Cap: US$41.0b

Flex sits at the center of the build out of AI and data center infrastructure, with its Cloud and Power Infrastructure arm supplying high density power, cooling, and integrated systems for customers that need ever more computing capacity. Revenue and earnings forecasts point to rapid expansion. The planned spin off of this business plus S&P 500 inclusion have brought more attention to the stock. At the same time, thin margins, high debt, customer concentration and recent insider selling mean execution needs to stay tight. For investors focused on cash flow support and potential mispricing, there is more to unpack in how Flex balances these growth drivers with its risks.

Flex’s AI infrastructure engine is accelerating, while thin margins and debt sit in the background. Get the full story with the analyst forecasts for Flex and see what the headline numbers might be masking.

Vertiv Holdings Co (VRT)

Overview: Vertiv Holdings Co supplies the power, cooling, and broader digital infrastructure that keeps data centers and communication networks running, including specialized liquid cooling systems that support high power AI hardware across more than 130 countries.

Market Cap: US$87.6b

Vertiv sits at the center of the AI build out story, providing liquid cooling and power systems that hyperscalers rely on to run dense GPU racks. Revenue and earnings growth forecasts are described as strong and supported by a sizeable backlog and recent acquisitions in cooling technologies. At the same time, the stock trades on a high P/E, depends heavily on a small group of large customers, and uses higher risk external borrowing, so any slowdown in AI infrastructure spending or execution slip from a relatively new management team could matter. For investors who focus on profitability, forecast ROE, and cash flow support, Vertiv’s role in AI infrastructure is closely tied to its underlying business fundamentals rather than only the AI narrative.

Vertiv’s AI infrastructure story is accelerating, and the stock’s high P/E hints that the market already expects a lot. See how the analyst forecasts for Vertiv Holdings Co line up with cash flows and what that might be missing.

The three stocks in this article are only a starting sample, with the full SWS discounted cash flow screen surfacing 154 more companies that combine cash flow potential with prices that sit below fair value on the Undervalued Stocks Based On Cash Flows screener. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction cash flow opportunities.

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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.