Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here is one cash-producing company that leverages its financial strength to beat its competitors and two that may struggle to keep up.
Two Stocks to Sell:
Angi (ANGI)
Trailing 12-Month Free Cash Flow Margin: 5.8%
Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Why Are We Cautious About ANGI?
- Value proposition isn’t resonating strongly as its service requests averaged 20.6% drops over the last two years
- Sales are projected to be flat over the next 12 months and imply weak demand
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
At $10.84 per share, Angi trades at 3.4x forward EV/EBITDA. Check out our free in-depth research report to learn more about why ANGI doesn’t pass our bar.
Enpro (NPO)
Trailing 12-Month Free Cash Flow Margin: 14.1%
Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE:NPO) designs, manufactures, and sells products used for machinery in various industries.
Why Is NPO Not Exciting?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.7% annually
- Underwhelming 6.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Enpro is trading at $210.70 per share, or 24.7x forward P/E. If you’re considering NPO for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Euronet Worldwide (EEFT)
Trailing 12-Month Free Cash Flow Margin: 8%
Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ:EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.
Why Will EEFT Outperform?
- Annual revenue growth of 11.1% over the last five years beat the sector average and underscores the unique value of its offerings
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 19.5% return on equity demonstrates management’s skill in finding high-return investments
Euronet Worldwide’s stock price of $70.61 implies a valuation ratio of 6.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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