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 leverages its financial strength to beat its competitors and two that may struggle to keep up.
Two Industrials Stocks to Sell:
AGCO (AGCO)
Trailing 12-Month Free Cash Flow Margin: 7.3%
With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology.
Why Is AGCO Risky?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings per share have contracted by 21% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Waning returns on capital imply its previous profit engines are losing steam
At $134.77 per share, AGCO trades at 22.8x forward P/E. Read our free research report to see why you should think twice about including AGCO in your portfolio.
Mayville Engineering (MEC)
Trailing 12-Month Free Cash Flow Margin: 9.8%
Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE:MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.
Why Are We Wary of MEC?
- Annual sales declines of 3.1% for the past two years show its products and services struggled to connect with the market during this cycle
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.8%
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Mayville Engineering is trading at $21.21 per share, or 98.5x forward P/E. If you’re considering MEC for your portfolio, see our FREE research report to learn more.
One Industrials Stock to Buy:
Astronics (ATRO)
Trailing 12-Month Free Cash Flow Margin: 6.1%
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ:ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Why Should You Buy ATRO?
- Impressive 12.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin jumped by 10.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
Astronics’s stock price of $77.82 implies a valuation ratio of 31.6x 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.