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

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.

Floor And Decor (FND)

Trailing 12-Month Free Cash Flow Margin: 4.5%

Operating large, warehouse-style stores, Floor & Decor (NYSE: FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates.

Why Do We Think FND Will Underperform?

1. Muted 2.3% annual revenue growth over the last three years shows its demand lagged behind its consumer retail peers
2. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam

Floor And Decor’s stock price of $57.87 implies a valuation ratio of 27.9x forward P/E. Dive into our free research report to see why there are better opportunities than FND.

Gap (GAP)

Trailing 12-Month Free Cash Flow Margin: 7.3%

Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE: GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.

Why Are We Cautious About GAP?

1. Sales were flat over the last three years, indicating it’s failed to expand its business
2. Limited expansion of stores suggests it’s prioritizing efficiency over growth at this stage
3. Low returns on capital reflect management’s struggle to allocate funds effectively

Gap is trading at $20.65 per share, or 8.6x forward P/E. To fully understand why you should be careful with GAP, check out our full research report (it’s free).

Antero Resources (AR)

Trailing 12-Month Free Cash Flow Margin: 17.7%

Holding roughly 521,000 net acres across West Virginia, Ohio, and Pennsylvania, Antero Resources (NYSE: AR) drills and produces natural gas, natural gas liquids, and oil from underground rock formations in the Appalachian Basin.

Why Do We Think Twice About AR?

1. 5.8% annual revenue growth over the last five years was slower than its energy upstream and integrated energy peers
2. Costs have risen faster than its revenue over the last five years, causing its EBITDA margin to decline by 10 percentage points

At $37.40 per share, Antero Resources trades at 8.9x forward P/E. Check out our free in-depth research report to learn more about why AR doesn’t pass our bar.

Stocks We Like More

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.