Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Cash-Producing Stocks in the Doghouse

KMB Cover Image

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 are three cash-producing companies to avoid and some better opportunities instead.

Kimberly-Clark (KMB)

Trailing 12-Month Free Cash Flow Margin: 12.1%

Originally founded as a Wisconsin paper mill in 1872, Kimberly-Clark (NYSE: KMB) is now a household products powerhouse known for personal care and tissue products.

Why Does KMB Worry Us?

  1. Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
  2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
  3. Free cash flow margin has stayed in place over the last year

Kimberly-Clark is trading at $133.18 per share, or 17.4x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than KMB.

Luxfer (LXFR)

Trailing 12-Month Free Cash Flow Margin: 10.4%

With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.

Why Do We Avoid LXFR?

  1. Sales tumbled by 3.2% annually over the last one years, showing market trends are working against its favor during this cycle
  2. Estimated sales for the next 12 months are flat and imply a softer demand environment
  3. Flat earnings per share over the last five years underperformed the sector average

Luxfer’s stock price of $10.55 implies a valuation ratio of 9.7x forward price-to-earnings. If you’re considering LXFR for your portfolio, see our FREE research report to learn more.

Crane NXT (CXT)

Trailing 12-Month Free Cash Flow Margin: 12.5%

Born from a corporate transformation completed in 2023, Crane NXT (NYSE: CXT) provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.

Why Is CXT Risky?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Estimated sales growth of 2.2% for the next 12 months implies demand will slow from its two-year trend
  3. Earnings per share were flat over the last two years while its revenue grew, showing its incremental sales were less profitable

At $46.88 per share, Crane NXT trades at 10.6x forward price-to-earnings. To fully understand why you should be careful with CXT, check out our full research report (it’s free).

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.

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