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. Keeping that in mind, here is one cash-producing company that excels at turning cash into shareholder value and two that may struggle to keep up.
Two Stocks to Sell:
Bumble (BMBL)
Trailing 12-Month Free Cash Flow Margin: 17.3%
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ: BMBL) is a leading dating app built with women at the center.
Why Is BMBL Not Exciting?
- Modest 4.8% annual growth in paying users over the last two years indicates potential challenges in customer acquisition and retention
- Platform has lost its luster lately as engagement trends have been sluggish and its average revenue per buyer has declined by 3.9% annually
- Forecasted revenue decline of 13.7% for the upcoming 12 months implies demand will fall off a cliff
At $3.61 per share, Bumble trades at 3.4x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than BMBL.
SS&C (SSNC)
Trailing 12-Month Free Cash Flow Margin: 21.1%
Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ: SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.
Why Does SSNC Fall Short?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.2 percentage points
- Free cash flow margin dropped by 4.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- ROIC of 6.6% reflects management’s challenges in identifying attractive investment opportunities
SS&C’s stock price of $87.42 implies a valuation ratio of 13.1x forward P/E. Check out our free in-depth research report to learn more about why SSNC doesn’t pass our bar.
One Stock to Watch:
Maximus (MMS)
Trailing 12-Month Free Cash Flow Margin: 6.7%
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Why Are We Positive On MMS?
- Annual revenue growth of 9.4% over the last five years was superb and indicates its market share increased during this cycle
- $5.43 billion in revenue allows it to spread its fixed costs across a wider base
- Share repurchases over the last two years enabled its annual earnings per share growth of 34.8% to outpace its revenue gains
Maximus is trading at $89.78 per share, or 10.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
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 Strong Momentum Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
