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

Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here is one cash-producing company that excels at turning cash into shareholder value and two best left off your watchlist.

Trailing 12-Month Free Cash Flow Margin: 6.1%

Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.

Why Is MDLZ Not Exciting?

Falling unit sales over the past two years show it’s struggled to move its products and had to rely on price increases

Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 5.2 percentage points

Free cash flow margin shrank by 4.2 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

Mondelez is trading at $57.26 per share, or 18.9x forward P/E. If you’re considering MDLZ for your portfolio, see our FREE research report to learn more.

Trailing 12-Month Free Cash Flow Margin: 10.1%

Run by the Boyd family, Boyd Gaming (NYSE:BYD) is a diversified operator of gaming entertainment properties across the United States, offering casino games, hotel accommodations, and dining.

Why Is BYD Risky?

11.4% annual revenue growth over the last five years was slower than its consumer discretionary peers

Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 4.1 percentage points over the next year

Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $89.87 per share, Boyd Gaming trades at 11.5x forward P/E. Read our free research report to see why you should think twice about including BYD in your portfolio, it’s free.

Trailing 12-Month Free Cash Flow Margin: 5.8%

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Why Could TXRH Be a Winner?

Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth

Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants

Industry-leading 20.5% return on capital demonstrates management’s skill in finding high-return investments

Texas Roadhouse’s stock price of $194.49 implies a valuation ratio of 30.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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.