1 Cash-Producing Stock with Impressive Fundamentals and 2 We Turn Down

Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.

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 reinvests wisely to drive long-term success and two that may struggle to keep up.

Two Business Services Stocks to Sell:

ICF International (ICFI)

Trailing 12-Month Free Cash Flow Margin: 6.4%

Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.

Why Is ICFI Risky?

1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 7.4% declines over the past two years
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.4%
3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2% annually

ICF International’s stock price of $83.02 implies a valuation ratio of 11.3x forward P/E. Read our free research report to see why you should think twice about including ICFI in your portfolio.

Equifax (EFX)

Trailing 12-Month Free Cash Flow Margin: 18.7%

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE:EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Why Does EFX Give Us Pause?

1. Efficiency has decreased over the last five years as its adjusted operating margin fell by 4.1 percentage points
2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.2% annually

Equifax is trading at $206.66 per share, or 24.1x forward P/E. If you’re considering EFX for your portfolio, see our FREE research report to learn more.

One Business Services Stock to Buy:

Globalstar (GSAT)

Trailing 12-Month Free Cash Flow Margin: 96.1%

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ:GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Why Will GSAT Beat the Market?

1. Market share has increased this cycle as its 16.3% annual revenue growth over the last five years was exceptional
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
3. Historical investments are beginning to pay off as its returns on capital are growing

At $61.88 per share, Globalstar trades at 497.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.