Stock Analysis

Coastal Financial And 2 Other Stocks That May Be Priced Below Their Estimated Worth

NYSE:MTAL
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As U.S. markets experience a slight rebound from recent sell-offs, with major indexes like the Dow Jones and S&P 500 inching upward, investors are keenly observing developments in Congress regarding fiscal policies that could influence market stability. In these fluctuating conditions, identifying stocks that may be undervalued can offer potential opportunities for investors seeking to capitalize on assets priced below their estimated worth.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

NameCurrent PriceFair Value (Est)Discount (Est)
Berkshire Hills Bancorp (NYSE:BHLB)$25.28$50.0349.5%
Super Group (SGHC) (NYSE:SGHC)$8.34$16.4849.4%
UMH Properties (NYSE:UMH)$16.46$32.4349.2%
Horizon Bancorp (NasdaqGS:HBNC)$15.09$29.8849.5%
Insteel Industries (NYSE:IIIN)$35.96$71.7749.9%
Carvana (NYSE:CVNA)$292.09$580.8849.7%
TXO Partners (NYSE:TXO)$15.25$29.9249%
Array Technologies (NasdaqGM:ARRY)$7.11$14.0949.5%
MAC Copper (NYSE:MTAL)$10.08$20.0549.7%
Clearfield (NasdaqGM:CLFD)$37.81$74.4749.2%

Click here to see the full list of 169 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Coastal Financial (NasdaqGS:CCB)

Overview: Coastal Financial Corporation, with a market cap of approximately $1.34 billion, operates as the bank holding company for Coastal Community Bank, offering a range of banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington.

Operations: The company's revenue is primarily derived from three segments: CCBX at $222.52 million, Community Bank at $84.07 million, and Treasury & Administration at $15.57 million.

Estimated Discount To Fair Value: 32.5%

Coastal Financial is trading at US$88.41, significantly below its estimated fair value of US$131.04, suggesting it is undervalued based on cash flows. Analysts expect revenue and earnings to grow substantially faster than the market rate over the next few years. Despite recent executive changes, including a CFO departure planned for October 2025, Coastal Financial reported strong first-quarter results with increased net income and interest income compared to the previous year.

NasdaqGS:CCB Discounted Cash Flow as at May 2025
NasdaqGS:CCB Discounted Cash Flow as at May 2025

MAC Copper (NYSE:MTAL)

Overview: MAC Copper Limited is engaged in operating and acquiring metals and mining businesses in Australia, with a market cap of $823.23 million.

Operations: The company generates revenue from its Blank Checks segment, totaling $340.74 million.

Estimated Discount To Fair Value: 49.7%

MAC Copper is trading at US$10.08, significantly below its estimated fair value of US$20.05, highlighting its undervaluation based on cash flows. The company forecasts strong revenue growth of 13.4% annually and earnings growth of 53.67% per year over the next three years, outpacing market averages and becoming profitable within this period. Recent debt restructuring has improved liquidity and reduced interest costs by approximately US$14 million annually, enhancing financial stability despite past shareholder dilution.

NYSE:MTAL Discounted Cash Flow as at May 2025
NYSE:MTAL Discounted Cash Flow as at May 2025

TXO Partners (NYSE:TXO)

Overview: TXO Partners, L.P. is an oil and natural gas company engaged in acquiring, developing, optimizing, and exploiting conventional reserves in North America with a market cap of approximately $832.72 million.

Operations: The company generates revenue of $299.70 million from the exploration and production of oil, natural gas, and natural gas liquids in North America.

Estimated Discount To Fair Value: 49%

TXO Partners, trading at US$15.25, is undervalued with an estimated fair value of US$29.92. Despite a high dividend yield of 15.8%, it is not well covered by earnings or cash flows, and recent shareholder dilution has occurred due to a $175 million equity offering. Earnings are expected to grow significantly at 44.6% annually over the next three years, surpassing market averages despite slower revenue growth projections of 11.2%.

NYSE:TXO Discounted Cash Flow as at May 2025
NYSE:TXO Discounted Cash Flow as at May 2025

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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.

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