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.
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 excel at turning cash into shareholder value and one best left off your watchlist.
One Stock to Sell:
Cushman & Wakefield (CWK)
Trailing 12-Month Free Cash Flow Margin: 1.7%
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE:CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Why Should You Sell CWK?
- The company has faced growth challenges as its 5.2% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
At $13.18 per share, Cushman & Wakefield trades at 8.6x forward P/E. Check out our free in-depth research report to learn more about why CWK doesn’t pass our bar.
Two Stocks to Watch:
Snowflake (SNOW)
Trailing 12-Month Free Cash Flow Margin: 22%
Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE:SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.
Why Will SNOW Outperform?
- Billings growth has averaged 24.8% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 32%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Snowflake is trading at $331.25 per share, or 16.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Crane (CR)
Trailing 12-Month Free Cash Flow Margin: 14.7%
Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Should CR Be on Your Watchlist?
- Operating margin increased by 5.3 percentage points over the last five years as it refined its cost structure
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 21.9% annually, topping its revenue gains
- Free cash flow margin jumped by 5.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Crane’s stock price of $201.57 implies a valuation ratio of 27.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.