1 Profitable Stock with Solid Fundamentals and 2 We Find Risky

August 22, 2025 at 00:41 AM EDT

BOX Cover Image

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that generates reliable profits without sacrificing growth and two that may struggle to keep up.

Two Stocks to Sell:

Box (BOX)

Trailing 12-Month GAAP Operating Margin: 6.2%

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 Are We Cautious About BOX?

Sales trends were unexciting over the last three years as its 6.6% annual growth was well below the typical software company
Estimated sales growth of 7.9% for the next 12 months is soft and implies weaker demand
Free cash flow margin is forecasted to shrink by 1.5 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors

At $31.65 per share, Box trades at 3.9x forward price-to-sales. If you’re considering BOX for your portfolio, see our FREE research report to learn more.

Crown Holdings (CCK)

Trailing 12-Month GAAP Operating Margin: 12.9%

Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.

Why Do We Steer Clear of CCK?

Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
Projected sales growth of 2.9% for the next 12 months suggests sluggish demand
Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 20.4%

Crown Holdings’s stock price of $100.99 implies a valuation ratio of 14x forward P/E. Read our free research report to see why you should think twice about including CCK in your portfolio.

One Stock to Watch:

McDonald's (MCD)

Trailing 12-Month GAAP Operating Margin: 45.8%

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.

Why Is MCD on Our Radar?

Rapidly increasing restaurant base reflects a desire to sell in new markets and scale quickly
Attractive franchise model leads to wonderful unit economics and a best-in-class gross margin of 57%
Robust free cash flow margin of 27% gives it many options for capital deployment

McDonald's is trading at $313 per share, or 24.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

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