Rapid spending isn’t always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.
Negative cash flow can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, here is one high-risk, high-reward company with the potential to scale into a market leader and two that could run into serious trouble.
Two Business Services Stocks to Sell:
Liberty Broadband (LBRDK)
Trailing 12-Month Free Cash Flow Margin: -4.7%
Operating across the United States, Liberty Broadband (NASDAQ: LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Why Are We Cautious About LBRDK?
- 3.1% annual revenue growth over the last two years was slower than its business services peers
- Cash-burning history makes us doubt the long-term viability of its business model
Liberty Broadband is trading at $47 per share, or 36.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including LBRDK in your portfolio.
Steelcase (SCS)
Trailing 12-Month Free Cash Flow Margin: -1.1%
Founded in 1912 when metal office furniture was replacing wooden alternatives, Steelcase (NYSE: SCS) is a global office furniture manufacturer that designs and produces workplace solutions including desks, chairs, architectural products, and services.
Why Should You Sell SCS?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Earnings per share were flat over the last five years and fell short of the peer group average
- Poor free cash flow margin of 0.7% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $16.07 per share, Steelcase trades at 13.2x forward P/E. Dive into our free research report to see why there are better opportunities than SCS.
One Business Services Stock to Watch:
Maximus (MMS)
Trailing 12-Month Free Cash Flow Margin: 6.7%
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Why Do We Like MMS?
- Impressive 9.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Revenue base of $5.43 billion gives it economies of scale and some distribution advantages
- Share repurchases over the last two years enabled its annual earnings per share growth of 34.8% to outpace its revenue gains
Maximus’s stock price of $84.94 implies a valuation ratio of 10.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
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