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 that may face some trouble.
One Stock to Sell:
Lindblad Expeditions (LIND)
Trailing 12-Month Free Cash Flow Margin: 8.3%
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Why Is LIND Not Exciting?
- Poor expense management has led to an operating margin of 3.8% that is below the industry average
- Projected 2.4 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Negative returns on capital show management lost money while trying to expand the business
At $12.53 per share, Lindblad Expeditions trades at 6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including LIND in your portfolio.
Two Stocks to Buy:
Inspire Medical Systems (INSP)
Trailing 12-Month Free Cash Flow Margin: 9.9%
Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.
Why Is INSP a Top Pick?
- Controlled growth in new domestic medical centersdomestic medical centers reflects a methodical approach to market expansion
- Earnings per share grew by 22.5% annually over the last five years and trumped its peers
- Free cash flow margin grew by 31.8 percentage points over the last five years, giving the company more chips to play with
Inspire Medical Systems is trading at $80.47 per share, or 99.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Mastercard (MA)
Trailing 12-Month Free Cash Flow Margin: 52.5%
Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE: MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.
Why Will MA Outperform?
- Annual revenue growth of 13.3% over the last five years beat the sector average and underscores the unique value of its offerings
- Share repurchases over the last two years enabled its annual earnings per share growth of 18.9% to outpace its revenue gains
- ROE punches in at 159%, illustrating management’s expertise in identifying profitable investments
Mastercard’s stock price of $575.66 implies a valuation ratio of 32.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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 Kadant (+351% 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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