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. Keeping that in mind, here is one cash-producing company that excels at turning cash into shareholder value and two that may face some trouble.
Two Stocks to Sell:
Appian (APPN)
Trailing 12-Month Free Cash Flow Margin: 8.4%
Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.
Why Are We Hesitant About APPN?
- Estimated sales growth of 10.5% for the next 12 months implies demand will slow from its two-year trend
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Low free cash flow margin of 8.4% for the last year gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Appian’s stock price of $21.05 implies a valuation ratio of 1.7x forward price-to-sales. If you’re considering APPN for your portfolio, see our FREE research report to learn more.
Array (ARRY)
Trailing 12-Month Free Cash Flow Margin: 5.4%
Going public in October 2020, Array (NASDAQ: ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Why Should You Sell ARRY?
- Annual sales declines of 5.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Array is trading at $8.50 per share, or 12x forward P/E. Read our free research report to see why you should think twice about including ARRY in your portfolio.
One Stock to Watch:
Astrana Health (ASTH)
Trailing 12-Month Free Cash Flow Margin: 4.4%
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Why Could ASTH Be a Winner?
- Market share has increased this cycle as its 55.7% annual revenue growth over the last two years was exceptional
- Estimated revenue growth of 16.7% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share have massively outperformed its peers over the last five years, increasing by 13.2% annually
At $38.95 per share, Astrana Health trades at 12.7x forward P/E. Is now a good time to buy? See for yourself in our full 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.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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.
