Yahoo Financeยท2025-11-07 18:45Core Viewpoint - Generating cash is crucial for businesses, but effective cash allocation is key to maximizing shareholder value. Some companies excel in this area while others may struggle. Group 1: Companies to Sell - Kellanova (K) has a trailing 12-month free cash flow margin of 4.7% and trades at $83.27 per share, reflecting a forward P/E of 22.4x, raising concerns about its investment potential [2][4] - Omnicom Group (OMC) has a trailing 12-month free cash flow margin of 10.4% and is trading at $73.90 per share, with a forward P/E of 8.1x, indicating it may not meet investment criteria [5][7] Group 2: Company to Watch - Seagate Technology (STX) boasts a trailing 12-month free cash flow margin of 12.7% and is recognized as a leading producer of data storage solutions [8] - Despite flat unit sales over the past two years and anticipated sales growth of only 2.4% for the next year, Seagate has shown annual revenue growth of 18.5% over the last two years, indicating increased market share [9][11] - Operating margin expansion of 6.9 percentage points over the last five years suggests effective expense optimization, although free cash flow margin has shrunk by 7.6 percentage points, indicating higher capital consumption [10][11]