Kraken Robotics among Undervalued Stocks Based On Cash Flows

Markets are navigating stubborn inflation and shifting policy signals across the US and Europe, making cash flow generation and valuation discipline crucial for stock pickers. The Undervalued Stocks Based On Cash Flows screener highlights companies trading below fair value, supported by real underlying activity. Kraken Robotics (TSXV:PNG), a Canada-based marine technology company building sonar and optical sensors, is one of these stocks.

Revenue at Kraken Robotics is spread across Asia Pacific, North America, and Europe, the Middle East, and Africa. Products account for about CA$66.3m in revenue, while services generate CA$41.4m. Market cap stands at CA$1.8b. The company's recent acquisition of Covelya and new credit facilities have scaled its product range and production footprint.

Management expects products to make up more than 75% of revenue, which aligns closely with a cash flow-driven screener. However, Kraken Robotics is still loss-making and relies heavily on defense and offshore spending. Integration and higher debt levels add execution risk, but analysts expect improvements in profitability and cash generation.