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.

Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. That said, here is one cash-producing company that excels at turning cash into shareholder value and two that may face some trouble.

Two Stocks to Sell:

MYR Group (MYRG)

Trailing 12-Month Free Cash Flow Margin: 3.1%

Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ: MYRG) is a specialty contractor in the electrical construction industry.

Why Should You Sell MYRG?

1. Backlog has dropped by 2.4% on average over the past two years, suggesting it’s losing orders as competition picks up
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 4.6% annually
3. Eroding returns on capital suggest its historical profit centers are aging

At $175.62 per share, MYR Group trades at 24.3x forward P/E. If you’re considering MYRG for your portfolio, see our FREE research report to learn more.

TD SYNNEX (SNX)

Trailing 12-Month Free Cash Flow Margin: 1%

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

Why Are We Wary of SNX?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Earnings per share fell by 1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Poor free cash flow margin of 1.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

TD SYNNEX is trading at $151.64 per share, or 12.1x forward P/E. Dive into our free research report to see why there are better opportunities than SNX.

One Stock to Buy:

Comfort Systems (FIX)

Trailing 12-Month Free Cash Flow Margin: 7.4%

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Will FIX Outperform?

1. Average backlog growth of 29.5% over the past two years shows it has a steady sales pipeline that will drive future orders
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Improving returns on capital reflect management’s ability to monetize investments

Comfort Systems’s stock price of $753.69 implies a valuation ratio of 37.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 6 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-small-cap company Exlservice (+354% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.