2 Cash-Producing Stocks for Long-Term Investors and 1 That Underwhelm

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 are two cash-producing companies that leverage their financial strength to beat the competition and one that may face some trouble.

One Stock to Sell:

Brown-Forman (BF.B)

Trailing 12-Month Free Cash Flow Margin: 15.7%

Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE:BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Why Does BF.B Fall Short?

1. Products have few die-hard fans as sales have declined by 2% annually over the last three years
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. Operating margin declined by 6.6 percentage points over the last year as its sales cratered

At $28.40 per share, Brown-Forman trades at 17.6x forward P/E. Check out our free in-depth research report to learn more about why BF.B doesn’t pass our bar.

Two Stocks to Buy:

DoorDash (DASH)

Trailing 12-Month Free Cash Flow Margin: 13.3%

Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ:DASH) operates an on-demand food delivery platform.

Why Should You Buy DASH?

1. Orders have grown by 22% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 931% outpaced its revenue gains
3. Free cash flow margin jumped by 13 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

DoorDash is trading at $181.25 per share, or 21.7x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.

Montrose (MEG)

Trailing 12-Month Free Cash Flow Margin: 11%

Founded to protect a tree-lined two-lane road, Montrose (NYSE:MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.

Why Will MEG Beat the Market?

1. Annual revenue growth of 15.3% over the last two years was superb and indicates its market share increased during this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 66.3% over the last two years outstripped its revenue performance
3. Free cash flow margin expanded by 5.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Montrose’s stock price of $20.83 implies a valuation ratio of 14.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.