A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here is one cash-producing company that leverages its financial strength to beat its competitors and two that may face some trouble.
Two Stocks to Sell:
OneWater (ONEW)
Trailing 12-Month Free Cash Flow Margin: 5.3%
A public company since early 2020, OneWater Marine (NASDAQ: ONEW) sells boats, yachts, and other marine products.
Why Does ONEW Give Us Pause?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Widely-available products (and therefore stiff competition) result in an inferior gross margin of 24.2% that must be offset through higher volumes
- High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens
OneWater is trading at $16.82 per share, or 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than ONEW.
Boyd Gaming (BYD)
Trailing 12-Month Free Cash Flow Margin: 11.5%
Run by the Boyd family, Boyd Gaming (NYSE: BYD) is a diversified operator of gaming entertainment properties across the United States, offering casino games, hotel accommodations, and dining.
Why Should You Sell BYD?
- 4.6% annual revenue growth over the last two years was slower than its consumer discretionary peers
- Forecasted revenue decline of 12.1% for the upcoming 12 months implies demand will fall off a cliff
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $86.53 per share, Boyd Gaming trades at 13x forward P/E. If you’re considering BYD for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Lantheus (LNTH)
Trailing 12-Month Free Cash Flow Margin: 31.5%
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Do We Like LNTH?
- Annual revenue growth of 35.6% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin grew by 22.9 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are growing as management capitalizes on its market opportunities
Lantheus’s stock price of $55.33 implies a valuation ratio of 8.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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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