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.
Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. That said, here is one cash-producing company that excels at turning cash into shareholder value and two best left off your watchlist.
Two Stocks to Sell:
Nature's Sunshine (NATR)
Trailing 12-Month Free Cash Flow Margin: 6.6%
Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.
Why Do We Think Twice About NATR?
- Annual revenue growth of 2.8% over the last three years was below our standards for the consumer staples sector
- Revenue base of $474.5 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Anticipated sales growth of 3.1% for the next year implies demand will be shaky
At $26.30 per share, Nature's Sunshine trades at 28x forward P/E. Dive into our free research report to see why there are better opportunities than NATR.
Otis (OTIS)
Trailing 12-Month Free Cash Flow Margin: 10%
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.
Why Is OTIS Not Exciting?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Projected sales growth of 5% for the next 12 months suggests sluggish demand
- Earnings per share lagged its peers over the last two years as they only grew by 7% annually
Otis’s stock price of $91.16 implies a valuation ratio of 21x forward P/E. If you’re considering OTIS for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
S&P Global (SPGI)
Trailing 12-Month Free Cash Flow Margin: 34.3%
Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.
Why Are We Backing SPGI?
- Decent 10.6% annual revenue growth over the last two years beat most of its peers, showing customers find value in its products and services
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
S&P Global is trading at $456.51 per share, or 24x 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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
