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:

JLL (JLL)

Trailing 12-Month Free Cash Flow Margin: 2.3%

Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE: JLL) is a company specializing in real estate advisory and investment management services.

Why Are We Out on JLL?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.9% over the last five years was below our standards for the consumer discretionary sector
2. Low free cash flow margin of 2.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

JLL is trading at $298.28 per share, or 16.7x forward P/E. Dive into our free research report to see why there are better opportunities than JLL.

Flowserve (FLS)

Trailing 12-Month Free Cash Flow Margin: 8.6%

Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE: FLS) manufactures and sells flow control equipment for various industries.

Why Does FLS Worry Us?

1. Average backlog growth of 1.6% over the past two years was mediocre and suggests fewer customers signed long-term contracts
2. Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its two-year trend
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Flowserve’s stock price of $52.87 implies a valuation ratio of 15.5x forward P/E. Check out our free in-depth research report to learn more about why FLS doesn’t pass our bar.

One Stock to Watch:

Palo Alto Networks (PANW)

Trailing 12-Month Free Cash Flow Margin: 37.6%

Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ: PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.

Why Could PANW Be a Winner?

1. Software offerings and brand resonate with consumers, as seen in its above-market 22% annual sales growth over the last five years
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. PANW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $202.70 per share, Palo Alto Networks trades at 13.7x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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