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.
Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here is one cash-producing company that leverages its financial strength to beat its competitors and two that may face some trouble.
Two Stocks to Sell:
Bel Fuse (BELFA)
Trailing 12-Month Free Cash Flow Margin: 6.9%
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ: BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Why Are We Hesitant About BELFA?
- Annual sales declines of 1.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Bel Fuse is trading at $175.28 per share, or 27.4x forward P/E. To fully understand why you should be careful with BELFA, check out our full research report (it’s free).
Haemonetics (HAE)
Trailing 12-Month Free Cash Flow Margin: 18.4%
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Why Do We Think Twice About HAE?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Smaller revenue base of $1.33 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its two-year trend
At $77.06 per share, Haemonetics trades at 15.3x forward P/E. Dive into our free research report to see why there are better opportunities than HAE.
One Stock to Watch:
Visteon (VC)
Trailing 12-Month Free Cash Flow Margin: 10.1%
Originally spun off from Ford Motor Company in 2000, Visteon (NYSE: VC) designs and manufactures cockpit electronics for vehicles, including digital instrument clusters, displays, infotainment systems, and battery management systems.
Why Does VC Stand Out?
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 36.6% annually
- Free cash flow margin grew by 9.3 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are climbing as management makes more lucrative bets
Visteon’s stock price of $98.27 implies a valuation ratio of 10.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 9 Market-Beating Stocks. 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.
