Free cash flow is one of the most reliable indicators of financial durability. These businesses not only generate cash but reinvest intelligently to sustain momentum.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are three cash-producing companies that leverage their financial strength to beat the competition.
Altria (MO)
Trailing 12-Month Free Cash Flow Margin: 45.6%
Best known for its Marlboro brand of cigarettes, Altria (NYSE:MO) offers tobacco and nicotine products.
Why Are We Positive On MO?
- Products command premium prices and result in a best-in-class gross margin of 70.9%
- Excellent operating margin of 55% highlights the efficiency of its business model
- MO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it’s becoming even less capital-intensive
Altria’s stock price of $59.03 implies a valuation ratio of 10.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Natera (NTRA)
Trailing 12-Month Free Cash Flow Margin: 5%
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Why Are We Bullish on NTRA?
- Products are seeing elevated demand as its tests processed averaged 19.6% growth over the past two years
- Adjusted operating margin improvement of 32 percentage points over the last two years demonstrates its ability to scale efficiently
- Free cash flow profile has moved into positive territory over the last five years, showing the company has crossed a key inflection point
Natera is trading at $238.52 per share, or 13.2x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Waste Connections (WCN)
Trailing 12-Month Free Cash Flow Margin: 13.2%
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE:WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Why Do We Watch WCN?
- Annual revenue growth of 11.6% over the past five years was outstanding, reflecting market share gains this cycle
- Offerings are mission-critical for businesses and result in a premier gross margin of 41.1%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $176.55 per share, Waste Connections trades at 32x 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-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
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