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.

Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. Keeping that in mind, here is one cash-producing company that leverages its financial strength to beat its competitors and two best left off your watchlist.

Two Stocks to Sell:

Stratasys (SSYS)

Trailing 12-Month Free Cash Flow Margin: 2.9%

Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ: SSYS) offers 3D printers and related materials, software, and services to many industries.

Why Do We Pass on SSYS?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Historical operating margin losses point to an inefficient cost structure
3. Cash-burning history makes us doubt the long-term viability of its business model

Stratasys is trading at $10.31 per share, or 27.6x forward P/E. Check out our free in-depth research report to learn more about why SSYS doesn’t pass our bar.

Schneider (SNDR)

Trailing 12-Month Free Cash Flow Margin: 6.8%

Employing thousands of drivers across the country to make deliveries, Schneider (NYSE: SNDR) makes full truckload and intermodal deliveries regionally and across borders.

Why Should You Dump SNDR?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.6% annually over the last two years
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Schneider’s stock price of $24.76 implies a valuation ratio of 22.6x forward P/E. Dive into our free research report to see why there are better opportunities than SNDR.

One Stock to Watch:

Dutch Bros (BROS)

Trailing 12-Month Free Cash Flow Margin: 5%

Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.

Why Does BROS Catch Our Eye?

1. Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance
2. Average same-store sales growth of 5.4% over the past two years indicates its restaurants are resonating with diners
3. Free cash flow margin grew by 9.8 percentage points over the last year, giving the company more chips to play with

At $66.51 per share, Dutch Bros trades at 94.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

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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