While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
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 that may face some trouble.
One Stock to Sell:
Energizer (ENR)
Trailing 12-Month Free Cash Flow Margin: 5.3%
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.
Why Does ENR Worry Us?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Anticipated sales growth of 1.9% for the next year implies demand will be shaky
- High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Energizer’s stock price of $21.34 implies a valuation ratio of 6.3x forward P/E. If you’re considering ENR for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Keysight (KEYS)
Trailing 12-Month Free Cash Flow Margin: 22.3%
Spun off from Hewlett-Packard in 2014, Keysight (NYSE: KEYS) offers electronic measurement products for use in various sectors.
Why Do We Watch KEYS?
- Offerings are mission-critical for businesses and result in a best-in-class gross margin of 63.3%
- Robust free cash flow margin of 21.2% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
- ROIC punches in at 21.2%, illustrating management’s expertise in identifying profitable investments
At $321.21 per share, Keysight trades at 29x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Allstate (ALL)
Trailing 12-Month Free Cash Flow Margin: 17.3%
Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE: ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.
Why Do We Like ALL?
- 9.4% annual revenue growth over the last five years surpassed the sector average as its policies resonated with customers
- Share repurchases over the last two years enabled its annual earnings per share growth of 139% to outpace its revenue gains
- Annual book value per share growth of 34.9% over the past two years was outstanding, reflecting strong capital accumulation this cycle
Allstate is trading at $249.07 per share, or 2x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,326% 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.
