1 Cash-Producing Stock Worth Your Attention and 2 That Underwhelm

September 15, 2025 at 00:40 AM EDT

MGPI 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 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:

MGP Ingredients (MGPI)

Trailing 12-Month Free Cash Flow Margin: 9.7%

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

Why Are We Out on MGPI?

Annual revenue declines of 6% over the last three years indicate problems with its market positioning
Projected sales decline of 15.8% over the next 12 months indicates demand will continue deteriorating
Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs

MGP Ingredients is trading at $27.97 per share, or 10.7x forward P/E. Dive into our free research report to see why there are better opportunities than MGPI.

Lockheed Martin (LMT)

Trailing 12-Month Free Cash Flow Margin: 4.6%

Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE: LMT) specializes in defense, space, homeland security, and information technology products.

Why Do We Steer Clear of LMT?

Backlog growth averaged a weak 7.3% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
Earnings per share fell by 4.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Diminishing returns on capital suggest its earlier profit pools are drying up

At $471 per share, Lockheed Martin trades at 16.7x forward P/E. To fully understand why you should be careful with LMT, check out our full research report (it’s free).

One Stock to Buy:

EMCOR (EME)

Trailing 12-Month Free Cash Flow Margin: 7.7%

Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services

Why Is EME a Top Pick?

Annual revenue growth of 15.6% over the past two years was outstanding, reflecting market share gains this cycle
Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Improving returns on capital reflect management’s ability to monetize investments

EMCOR’s stock price of $634.77 implies a valuation ratio of 26x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

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 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-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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