Core Insights - Companies generating cash are not necessarily good investments if they fail to reinvest wisely, which can limit their growth potential [1] Group 1: Nike (NKE) - Nike has a trailing 12-month free cash flow margin of 6.5% and is a major player in athletic footwear and apparel [2] - The stock is currently trading at $61.93 per share, with a forward P/E ratio of 32.9 [4] Group 2: DistributionNOW (DNOW) - DistributionNOW has a trailing 12-month free cash flow margin of 7.3% and provides supply chain solutions for energy and industrial markets [5] - The stock price is $13.57, reflecting a valuation ratio of 32.7x forward EV-to-EBITDA [7] Group 3: General Motors (GM) - General Motors has a trailing 12-month free cash flow margin of 7.9% and offers a variety of vehicle brands [8] - The stock trades at $69.03 per share, with a forward P/E ratio of 6.3 [13] - Recent performance indicators show muted revenue growth of 2.5% annually over the last two years, suggesting demand issues [10] - Future growth is projected to be soft, with Wall Street estimates indicating only 3.7% growth [11] - The company faces challenges with a projected sales decline of 1.4% over the next year and high production costs reflected in a gross margin of 12% [12]