While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.

Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here is one cash-producing company that excels at turning cash into shareholder value and two best left off your watchlist.

Two Stocks to Sell:

Restaurant Brands (QSR)

Trailing 12-Month Free Cash Flow Margin: 14.9%

Formed through a strategic merger, Restaurant Brands International (NYSE: QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.

Why Is QSR Not Exciting?

1. Estimated sales growth of 4.5% for the next 12 months implies demand will slow from its six-year trend
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 6.8 percentage points
3. 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Restaurant Brands’s stock price of $61.78 implies a valuation ratio of 15.8x forward P/E. If you’re considering QSR for your portfolio, see our FREE research report to learn more.

Worthington (WOR)

Trailing 12-Month Free Cash Flow Margin: 13.8%

Founded by a steel salesman, Worthington (NYSE: WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.

Why Do We Pass on WOR?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 17.7% annually over the last five years
2. Earnings per share have contracted by 27.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Worthington is trading at $65.36 per share, or 19.7x forward P/E. Dive into our free research report to see why there are better opportunities than WOR.

One Stock to Watch:

Mirion (MIR)

Trailing 12-Month Free Cash Flow Margin: 9.4%

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE: MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Why Are We Fans of MIR?

1. Annual revenue growth of 8.2% over the last four years beat the sector average and underscores the unique value of its offerings
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 28.2% outpaced its revenue gains
3. Free cash flow margin expanded by 3.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $22.25 per share, Mirion trades at 40.8x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Comfort Systems (+782% 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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