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. Keeping that in mind, here are three cash-producing companies that don't make the cut and some better opportunities instead.
Reynolds (REYN)
Trailing 12-Month Free Cash Flow Margin: 8.2%
Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste.
Why Should You Dump REYN?
Reynolds's stock price of $23.50 implies a valuation ratio of 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than REYN.
Regal Rexnord (RRX)
Trailing 12-Month Free Cash Flow Margin: 15.2%
Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products.
Why Are We Cautious About RRX?
Regal Rexnord is trading at $143.79 per share, or 13.6x forward P/E. To fully understand why you should be careful with RRX, check out our full research report (it's free for active Edge members).
West Pharmaceutical Services (WST)
Trailing 12-Month Free Cash Flow Margin: 11.6%
Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE:WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.
Why Does WST Give Us Pause?
At $267.19 per share, West Pharmaceutical Services trades at 38x forward P/E. Dive into our free research report to see why there are better opportunities than WST.
Stocks We Like More
Donald Trump's April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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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