2 Cash-Producing Stocks for Long-Term Investors and 1 We Brush Off

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. That said, here are two cash-producing companies that excel at turning cash into shareholder value and one best left off your watchlist.

One Stock to Sell:

Sealed Air (SEE)

Trailing 12-Month Free Cash Flow Margin: 7.2%

Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.

Why Are We Out on SEE?

1. Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Sales were less profitable over the last two years as its earnings per share fell by 3.9% annually, worse than its revenue declines
3. Eroding returns on capital suggest its historical profit centers are aging

At $31.31 per share, Sealed Air trades at 10.2x forward P/E. Check out our free in-depth research report to learn more about why SEE doesn’t pass our bar.

Two Stocks to Watch:

Bentley Systems (BSY)

Trailing 12-Month Free Cash Flow Margin: 30.6%

Pioneering the concept of "digital twins" for infrastructure projects long before it became an industry buzzword, Bentley Systems (NASDAQ:BSY) provides software solutions that help engineers design, build, and operate infrastructure projects across sectors including roads, bridges, utilities, mining, and industrial facilities.

Why Are We Fans of BSY?

1. Net revenue retention rate of 110% shows the company enjoys some degree of customer loyalty
2. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
3. BSY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Bentley Systems is trading at $53.30 per share, or 11.4x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Inter Parfums (IPAR)

Trailing 12-Month Free Cash Flow Margin: 13.7%

With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ:IPAR) manufactures and distributes fragrances worldwide.

Why Will IPAR Beat the Market?

1. Annual revenue growth of 14.6% over the last three years beat the sector average and underscores the popularity of its brand
2. Free cash flow margin expanded by 8.7 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
3. ROIC punches in at 27.4%, illustrating management’s expertise in identifying profitable investments

Inter Parfums’s stock price of $112.08 implies a valuation ratio of 20.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

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 9 Market-Beating Stocks. 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

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