Lubin Investment · Blog

The cheapest quality stocks of June 2026

2026-06-11 ·

In June 2026, five stocks combine flawless accounting quality, rated 10/10, with a very low price. Afya, Universal Insurance, RenaissanceRe, Collegium and SkyWest trade between 1.1 and 3.9 times their annual cash. A great score does not mean a great deal: each one carries a tension that explains the price.

What a 10/10 score actually means

On my site, every stock gets a quality score out of 10. That score says nothing about the price. It answers one question: is this a good business? And it answers with accounting facts, not with a gut feeling. Is it profitable, are sales rising, does cash follow, does the company buy back its shares rather than waste money, is debt manageable? A 10/10 score means all these lights are green at the same time. That is rare.

Why do I separate quality from price from the start? Because mixing the two is the number one mistake. A great company bought too expensive is still a bad investment. A mediocre company, even dirt cheap, stays mediocre. So a perfect score does not tell you to buy. It only tells you the business itself stands firm. Price is a different conversation.

P/FCF, in one sentence

For the price, I look at one simple ratio: the P/FCF (price to free cash flow). Free cash flow is the money that truly stays in the bank once every bill is paid (salaries, machines, taxes). P/FCF is the share price divided by that yearly cash. A P/FCF of 1.1 means you pay barely more than one year of the cash generated. The lower it is, the cheaper it is.

Now the trap: a P/FCF this low, with flawless quality, does not fall from the sky. The market is not stupid. If it gives away a fine machine, it is afraid of something. My job is to name that fear for each case, and let you judge whether it is overblown or justified. Here are the five, from cheapest to least cheap.

Afya (AFYA): 1.1 times cash, the cheapest of the lot

Sector: education. Afya trains doctors in Brazil, from private medical schools to continuing education for practitioners. It is the cheapest stock in the selection, at 1.1 times its free cash flow. In other words, at the current price, the company generates the equivalent of its value in cash in a little over one year. On paper, it is almost indecent.

The tension? Country risk. Afya is Brazilian, listed through a foreign structure, exposed to the local currency, to the regulation of medical education, and to interest rates that were long among the highest in the world. When an investor buys an emerging asset, they demand a discount, a price cut to compensate for that risk. That discount is what you see in the 1.1. The quality of the business is real, the doubt is about the environment, not about the accounts.

Universal Insurance (UVE): 2.9 times, Florida's insurer

Sector: insurance. Universal Insurance mostly insures homes in Florida. At 2.9 times its cash, the stock is very cheap for a company rated 10/10. And here the tension is obvious: Florida is the state of hurricanes.

A home insurer concentrated in a natural-disaster zone lives with a sword over its head. One violent hurricane season can turn a profitable year into a year of losses. So the market pays for this tail risk, the rare but brutal scenario, with a permanent discount. The 10/10 score reflects solid accounts today. The low price reflects the fear of tomorrow's sky. Both can be true at the same time.

RenaissanceRe (RNR): 3.0 times, reinsurance

Sector: reinsurance. RenaissanceRe is a reinsurer: in plain words, the insurer of insurers. When an insurance company wants to protect itself from a giant claim, it reinsures with players like RNR. At 3.0 times its cash, it is one of the most solid businesses on this list, and yet one of the cheapest.

The tension echoes Universal's, on a larger scale: reinsurance collects regular premiums and sometimes pays huge, unpredictable claims (hurricanes, earthquakes, major disasters). Results are therefore volatile by nature. The market hates earnings volatility and punishes it with a low multiple, even when the company has proven it can manage risk over time. This is exactly the kind of place where a low price can reward whoever can stomach the irregularity.

Collegium Pharmaceutical (COLL): 3.8 times, the ticking patent

Sector: pharmaceuticals. Collegium Pharmaceutical sells pain treatments, including a range designed to limit abuse. At 3.8 times its cash, the stock is still very cheap. But here the tension has a precise name every pharma investor knows: the patent cliff.

A drugmaker lives off molecules protected by patents. As long as the patent runs, the company is alone with its product and earns fat margins. The day it expires, generics arrive and the cash can collapse. So the market looks less at today's cash than at the remaining life of the patents. A P/FCF of 3.8 reflects that worry: you pay very little, because the market doubts the cash will last. The whole thesis hinges on Collegium's ability to renew its portfolio before the deadline.

SkyWest (SKYW): 3.9 times, regional aviation

Sector: air transport. SkyWest operates regional flights in the United States, most often under the colors of the major airlines (American, Delta, United) through contracts. At 3.9 times its cash, it is the fifth in my ranking, and the tension is the one of the whole airline sector: cyclicality.

Aviation depends on fuel prices, pilot employment, the economic cycle, and the health of the major carriers that subcontract routes to it. When the economy stumbles, travel falls and the fixed costs (planes, maintenance) remain. So the market historically applies low multiples to airlines, wary of this dependence on the cycle. A 10/10 score says SkyWest manages its accounts well here and now. The 3.9 says the market stays cautious about the rest of the cycle.

Why a perfect score is never enough

You may have noticed the common thread: for each one, the 10/10 score says the same thing (the business is healthy), and the low price tells a different fear (emerging market, hurricanes, patents, cycle). That is exactly why I judge quality and price separately. The score gives you the foundation. The P/FCF gives you the bet. The tension tells you what you are really buying.

A very low P/FCF is never a bargain in itself. It only is if you think the market's fear is overblown and the quality will hold. If you believe the hurricane, the patent or the recession will truly hit, then the low price is not a windfall, it is a warning. The right reflex is to start from the list of companies rated 10/10, cross it with the cheapest ones, and finally read each tension calmly.

You can explore both angles yourself: the full list of companies rated 10/10 on the 10/10 quality ranking, and the ones the market prices lowest on the undervalued stocks ranking. Crossing the two is exactly what this list does for you. It is also, in one sentence, why I built this site: to judge the quality and the price of a stock in a few seconds, separately, so I never again confuse a good company with a good deal.

FAQ

Is a stock rated 10/10 a good buy?

Not necessarily. The score only judges the quality of the business, from accounting facts. The price is judged separately, with the P/FCF. A perfect score bought too expensive is still a bad investment, and a low price can hide a real risk.

How is the quality score calculated?

On objective financial criteria: profitability, growth in sales and cash, margins, share buybacks, debt, return on capital. It is accounting, not an opinion. The score tells you whether the business is sound, independent of the stock price.

What does a P/FCF of 1.1 mean concretely?

That you pay for the stock barely more than one year of the cash it generates. The lower the P/FCF, the cheaper the stock. But a figure this low almost always signals a market fear you should understand before buying.

Why are these five stocks so cheap?

Each carries a tension: country risk for Afya, hurricanes for Universal Insurance and RenaissanceRe, a patent cliff for Collegium, cyclicality for SkyWest. The low price pays for that risk. The quality itself stays proven by the accounts.

What should you do with a ranking like this?

Use it as a starting point, not a shopping list. You start from quality companies, spot the cheapest, then judge whether the market's fear is overblown. This is an educational analysis, do your own research.

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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).