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.

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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 with Warning Signs

NPO 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 that don’t make the cut and some better opportunities instead.

Enpro (NPO)

Trailing 12-Month Free Cash Flow Margin: 14%

Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.

Why Do We Think Twice About NPO?

  1. Sales stagnated over the last five years and signal the need for new growth strategies
  2. Flat earnings per share over the last two years underperformed the sector average
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Enpro’s stock price of $226.20 implies a valuation ratio of 28.7x forward P/E. Dive into our free research report to see why there are better opportunities than NPO.

Organon (OGN)

Trailing 12-Month Free Cash Flow Margin: 10.5%

Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE: OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.

Why Are We Cautious About OGN?

  1. Annual sales declines of 2.6% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
  3. Free cash flow margin dropped by 25.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $9.13 per share, Organon trades at 2.4x forward P/E. Check out our free in-depth research report to learn more about why OGN doesn’t pass our bar.

Western Union (WU)

Trailing 12-Month Free Cash Flow Margin: 9.1%

With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE: WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.

Why Do We Think WU Will Underperform?

  1. Sales tumbled by 3.6% annually over the last five years, showing market trends are working against its favor during this cycle
  2. Earnings per share were flat over the last five years and fell short of the peer group average
  3. Negative return on equity shows management lost money while trying to expand the business

Western Union is trading at $8.63 per share, or 4.7x forward P/E. Read our free research report to see why you should think twice about including WU in your portfolio.

Stocks We Like 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 6 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-micro-cap company Tecnoglass (+1,754% 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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