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.
Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here are two cash-producing companies that reinvest wisely to drive long-term success and one that may face some trouble.
Two Stocks to Watch:
Boot Barn (BOOT)
Trailing 12-Month Free Cash Flow Margin: 4.1%
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE: BOOT) is a western-inspired apparel and footwear retailer.
Why Are We Positive On BOOT?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 4.8% over the past two years
- Exciting sales outlook for the upcoming 12 months calls for 14.4% growth, an acceleration from its three-year trend
At $167.69 per share, Boot Barn trades at 20.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Expand Energy (EXE)
Trailing 12-Month Free Cash Flow Margin: 23.2%
Rebranded from Chesapeake Energy in 2024 after emerging from bankruptcy, Expand Energy (NASDAQ: EXE) produces natural gas, oil, and natural gas liquids from underground shale formations in Louisiana, Pennsylvania, Ohio, and West Virginia.
Why Is EXE a Good Business?
- Annual revenue growth of 23.8% over the last five years was superb and indicates its market share increased during this cycle
- Enormous revenue base of $12.96 billion provides significant leverage in supplier negotiations
- EBITDA margin improvement of 43.6 percentage points over the last five years demonstrates its ability to scale efficiently
Expand Energy’s stock price of $100.56 implies a valuation ratio of 12.1x forward P/E. Is now the right time to buy? 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
