Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are two profitable companies that balance growth and profitability and one that may face some trouble.
One Stock to Sell:
Enviri (NVRI)
Trailing 12-Month GAAP Operating Margin: 1%
Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE: NVRI) offers steel and waste handling services.
Why Should You Dump NVRI?
- Sales trends were unexciting over the last two years as its 2.7% annual growth was below the typical industrials company
- Negative free cash flow raises questions about the return timeline for its investments
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Enviri is trading at $12.54 per share, or 3.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why NVRI doesn’t pass our bar.
Two Stocks to Watch:
Monarch (MCRI)
Trailing 12-Month GAAP Operating Margin: 20.1%
Established in 1993, Monarch (NASDAQ: MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.
Why Are We Positive On MCRI?
- Healthy operating margin of 21.1% shows it’s a well-run company with efficient processes
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 40% annually, topping its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $89.70 per share, Monarch trades at 15.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Royal Caribbean (RCL)
Trailing 12-Month GAAP Operating Margin: 26.4%
Established in 1968, Royal Caribbean Cruises (NYSE: RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences.
Why Do We Like RCL?
- Impressive 30% annual revenue growth over the last five years indicates it’s winning market share
- Free cash flow margin is on track to jump by 11.2 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Royal Caribbean’s stock price of $285 implies a valuation ratio of 16.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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