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. Keeping that in mind, 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:

Amneal (AMRX)

Trailing 12-Month Free Cash Flow Margin: 8.9%

Founded in 2002 and growing into one of America's largest generic drug producers, Amneal Pharmaceuticals (NASDAQ: AMRX) develops, manufactures, and distributes generic medicines, specialty branded drugs, biosimilars, and injectable products for the U.S. healthcare market.

Why Are We Hesitant About AMRX?

1. Estimated sales growth of 2.1% for the next 12 months implies demand will slow from its two-year trend
2. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 1 percentage points
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Amneal’s stock price of $12.54 implies a valuation ratio of 12.9x forward P/E. If you’re considering AMRX for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Veeva Systems (VEEV)

Trailing 12-Month Free Cash Flow Margin: 43.4%

Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE: VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.

Why Are We Fans of VEEV?

1. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
2. Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 28.7%, and it turbocharged its profits by achieving some fixed cost leverage
3. Strong free cash flow margin of 43.4% enables it to reinvest or return capital consistently

At $152.15 per share, Veeva Systems trades at 7.3x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Philip Morris (PM)

Trailing 12-Month Free Cash Flow Margin: 26.2%

Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Why Will PM Outperform?

1. Unique products and pricing power result in a best-in-class gross margin of 66%
2. Highly efficient business model is illustrated by its impressive 36% operating margin, and its operating leverage amplified its profits over the last year
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Philip Morris is trading at $159.99 per share, or 19.1x 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

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 meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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 Kadant (+351% five-year return). Find your next big winner with StockStory today.