3 Cash-Producing Stocks We Steer Clear Of

August 21, 2025 at 05:39 AM EDT

BOX Cover Image

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. That said, here are three cash-producing companies that don’t make the cut and some better opportunities instead.

Box (BOX)

Trailing 12-Month Free Cash Flow Margin: 27.2%

Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE: BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.

Why Is BOX Not Exciting?

6.6% annual revenue growth over the last three years was slower than its software peers
Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 7.9%
Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.5 percentage points

At $31.60 per share, Box trades at 4x forward price-to-sales. If you’re considering BOX for your portfolio, see our FREE research report to learn more.

Macy's (M)

Trailing 12-Month Free Cash Flow Margin: 1.1%

With a storied history that began with its 1858 founding, Macy’s (NYSE: M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Are We Out on M?

Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
Projected sales decline of 4.3% over the next 12 months indicates demand will continue deteriorating
Subpar operating margin of 2.3% constrains its ability to invest in process improvements or effectively respond to new competitive threats

Macy's is trading at $12.86 per share, or 6.7x forward P/E. Check out our free in-depth research report to learn more about why M doesn’t pass our bar.

Allient (ALNT)

Trailing 12-Month Free Cash Flow Margin: 10.7%

Founded in 1962, Allient (NASDAQ: ALNT) develops and manufactures precision and specialty-controlled motion components and systems.

Why Are We Hesitant About ALNT?

Customers postponed purchases of its products and services this cycle as its revenue declined by 3.5% annually over the last two years
Performance over the past two years was negatively impacted by new share issuances as its earnings per share dropped by 12.6% annually, worse than its revenue
Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging

Allient’s stock price of $43.56 implies a valuation ratio of 20.9x forward P/E. Read our free research report to see why you should think twice about including ALNT in your portfolio.

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3 Cash-Producing Stocks We Steer Clear Of

Box (BOX)

Macy's (M)

Allient (ALNT)

High-Quality Stocks for All Market Conditions

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