A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Luckily for you, we built StockStory to help you separate the good from the bad. That said, here are two cash-producing companies that excel at turning cash into shareholder value and one that may struggle to keep up.
One Industrials Stock to Sell:
Atkore (ATKR)
Trailing 12-Month Free Cash Flow Margin: 5%
Protecting the things that power our world, Atkore (NYSE: ATKR) designs and manufactures electrical safety products.
Why Are We Out on ATKR?
- Sales tumbled by 7.8% annually over the last two years, showing market trends are working against it during this cycle
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.2 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
At $79.98 per share, Atkore trades at 13.4x forward P/E. Read our free research report to see why you should think twice about including ATKR in your portfolio.
Two Industrials Stocks to Watch:
MYR Group (MYRG)
Trailing 12-Month Free Cash Flow Margin: 6%
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ: MYRG) is a specialty contractor in the electrical construction industry.
Why Is MYRG on Our Radar?
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin expanded by 4.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
MYR Group is trading at $483.30 per share, or 40.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Woodward (WWD)
Trailing 12-Month Free Cash Flow Margin: 9.7%
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ: WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Are We Backing WWD?
- Annual revenue growth of 13% over the past five years was outstanding, reflecting market share gains this cycle
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Woodward’s stock price of $436.66 implies a valuation ratio of 43.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
