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 leverage their financial strength to beat the competition and one that may struggle to keep up.
One Stock to Sell:
Flywire (FLYW)
Trailing 12-Month Free Cash Flow Margin: 8.2%
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Why Does FLYW Fall Short?
- Gross margin of 61.3% reflects its relatively high servicing costs
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
At $14.62 per share, Flywire trades at 2.8x forward price-to-sales. Check out our free in-depth research report to learn more about why FLYW doesn’t pass our bar.
Two Stocks to Buy:
ServiceNow (NOW)
Trailing 12-Month Free Cash Flow Margin: 31.6%
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE: NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Will NOW Beat the Market?
- Sales pipeline is in good shape as its current remaining performance obligations (cRPO) averaged 21.8% growth over the last year
- Highly efficient business model is illustrated by its impressive 13.9% operating margin, and it turbocharged its profits by achieving some fixed cost leverage
- NOW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
ServiceNow’s stock price of $141.85 implies a valuation ratio of 2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Chart (GTLS)
Trailing 12-Month Free Cash Flow Margin: 9.3%
Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE: GTLS) provides equipment to store and transport gasses.
Why Should You Buy GTLS?
- Demand is greater than supply as the company’s 25.6% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Share buybacks catapulted its annual earnings per share growth t 34.6%, which outperformed its revenue gains over the last two years
- Free cash flow margin jumped by 11.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Chart is trading at $206.62 per share, or 16.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
