The 50 most undervalued stocks: Lubin screener June 2026
2026-06-22 · By Lubin Danilo, founder of Lubin Investment
Our screener analyzes 5,000 global stocks on 10 FCF criteria. In June 2026, stocks with the largest discount to our buy target include OMAB (price-to-FCF 0.6x), CALM (142% discount), SIGI (63%), RNR and MCY. The discount is the gap between our FCF x7 target and market price. A large discount is not always a risk-free opportunity.
Methodology: how we calculate the discount
Our buy target is calculated as: FCF per share × 7. This 7x multiple is our fundamental reference, corresponding to a price-to-FCF ratio of 7x, implying an FCF yield of roughly 14%. The discount is then: (target - price) / price × 100. A 50% discount means our target is 50% above the current price. Note: this discount is a valuation gap, not a promise of upside.
Top 10 most undervalued stocks in June 2026
| Ticker | Sector | Price/FCF | Discount vs target | Score |
|---|---|---|---|---|
| OMAB | Airports (Mexico) | 0.6x | Extreme | Very high |
| CALM | Farm Products (eggs) | 5.1x | +142.6% | Very high |
| SIGI | Insurance P&C | 5.0x | +63.1% | Very high |
| UVE | Insurance P&C | 2.9x | High | Very high |
| RNR | Reinsurance | ~2.9x | High | Very high |
| MCY | Insurance P&C (CA) | 3.9x | +64% | Very high |
| SKYW | Regional aviation | 3.9x | Significant | Very high |
| CINF | Insurance P&C | 7.9x | ~2.8% | Very high |
| AIZ | Specialty insurance | 9.6x | +11.6% | Very high |
| DECK | Premium footwear | 14.8x | +8.9% | Very high |
Sector breakdown of undervalued stocks
Sector analysis reveals a concentration in property and casualty insurance (P&C): 6 of the top 10 positions belong to this sector. The reason: P&C insurers generate significant FCF (premiums are collected before claims) but the market applies low valuation multiples due to uncertainty from catastrophic risks. Our FCF-based method can therefore find significant discounts in this sector.
Important warnings about the list
- OMAB (0.6x): Mexican airports subject to political, regulatory and peso/dollar exchange risk
- CALM (142%): FCF inflated by 2022-2024 avian flu crisis, normalization likely
- RNR: reinsurer exposed to natural catastrophes (hurricanes, earthquakes) — highly volatile FCF
- MCY: California auto insurer, exposed to wildfire risk and state regulations
- SKYW: regional aviation, high cyclicality, exposure to fuel costs and United/Delta contracts
What this list is not
This list is not a recommended portfolio or an absolute quality ranking. It measures a valuation gap at a point in time. Some discounts are justified by specific risks (CALM, OMAB). Others reflect genuine market undervaluation of solid companies (SIGI, AIZ, CINF). The difference between these two cases is deep qualitative analysis — which our 10-criteria scoring method attempts to capture.
FAQ
Why does OMAB have a price-to-FCF ratio of 0.6x? Is that possible?
Yes, in exceptional circumstances. OMAB (Grupo Aeroportuario del Centro Norte) manages airports in Mexico. Its FCF is very high relative to its market cap due to a combination of post-Covid traffic growth, long-term concessions and a discount valuation context for Mexican assets. A 0.6x price-to-FCF ratio means the company could theoretically buy back all its shares with 7 months of FCF.
Why is CINF only 2.8% below target yet in the top 10?
CINF (Cincinnati Financial) is one of the best P&C insurers in our screener, very highly rated. Its 2.8% discount means it is almost exactly at our buy target. It appears in our ranking because, despite being slightly above our target by 2.8%, it remains one of the few assets with a valuation close to our target among the highest-rated stocks.
How to use this list practically?
As an analytical tool, not a recommendation. It identifies stocks where the gap between fundamentals (FCF) and market price is largest. The next step is deep qualitative analysis to distinguish justified discounts (specific risks) from genuine valuation opportunities. This work is each investor's responsibility.
Is the list updated regularly?
Yes. Our screener calculates data in near real-time on prices and recalculates targets with each quarterly or annual earnings release. The discount ranking therefore changes regularly. This publication is the June 2026 snapshot.
Why are P&C insurers overrepresented in the list?
P&C insurers generate FCF through premiums collected before claims (the float). This model creates high but irregular FCF (major catastrophes can create negative years). The market values this model cautiously, creating structural discounts. Our method, based on multi-year FCF averages, identifies these discounts as significant.
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About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).