A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here are two cash-producing companies that excel at turning cash into shareholder value and one best left off your watchlist.
One Stock to Sell:
Republic Services (RSG)
Trailing 12-Month Free Cash Flow Margin: 15.4%
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Why Is RSG Not Exciting?
- The company has faced growth challenges as its 4.2% annual revenue increases over the last two years fell short of other industrials companies
- Flat unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Projected sales growth of 4.8% for the next 12 months suggests sluggish demand
Republic Services’s stock price of $224 implies a valuation ratio of 28.7x forward P/E. Read our free research report to see why you should think twice about including RSG in your portfolio.
Two Stocks to Watch:
Belden (BDC)
Trailing 12-Month Free Cash Flow Margin: 7.4%
With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE: BDC) designs, manufactures, and sells electronic components to various industries.
Why Are We Fans of BDC?
- Impressive 11.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Exciting sales outlook for the upcoming 12 months calls for 34.6% growth, an acceleration from its two-year trend
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Belden is trading at $115.45 per share, or 12.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Expand Energy (EXE)
Trailing 12-Month Free Cash Flow Margin: 21.2%
Rebranded from Chesapeake Energy in 2024 after emerging from bankruptcy, Expand Energy (NASDAQ: EXE) produces natural gas, oil, and natural gas liquids from underground shale formations in Louisiana, Pennsylvania, Ohio, and West Virginia.
Why Do We Love EXE?
- Annual revenue growth of 19.4% over the past five years was outstanding, reflecting market share gains this cycle
- Massive revenue base of $12.66 billion makes it a household name that influences purchasing decisions
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
At $98.58 per share, Expand Energy trades at 12.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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.
