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 two cash-producing companies that reinvest wisely to drive long-term success and one that may struggle to keep up.
One Stock to Sell:
WillScot Mobile Mini (WSC)
Trailing 12-Month Free Cash Flow Margin: 20.2%
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Why Do We Steer Clear of WSC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.5% annually over the last two years
- Earnings per share have dipped by 1.8% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
WillScot Mobile Mini’s stock price of $26.96 implies a valuation ratio of 24x forward P/E. Dive into our free research report to see why there are better opportunities than WSC.
Two Stocks to Buy:
APi (APG)
Trailing 12-Month Free Cash Flow Margin: 8.3%
Started in 1926 as an insulation contractor, APi (NYSE: APG) provides life safety solutions and specialty services for buildings and infrastructure.
Why Is APG a Good Business?
- Impressive 18.6% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 18.4% outpaced its revenue gains
- Free cash flow margin grew by 8.7 percentage points over the last five years, giving the company more chips to play with
At $41.19 per share, APi trades at 23.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Intuitive Surgical (ISRG)
Trailing 12-Month Free Cash Flow Margin: 32.8%
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Do We Love ISRG?
- Annual revenue growth of 20.7% over the last two years was superb and indicates its market share increased during this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 17.4% annually
- Free cash flow margin jumped by 11.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Intuitive Surgical is trading at $358.88 per share, or 35.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
