Rapid spending isn’t always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.
Not all companies are worth the risk, and that’s why we built StockStory - to help you spot the red flags. Keeping that in mind, here are three cash-burning companies that don’t make the cut and some better opportunities instead.
Blink Charging (BLNK)
Trailing 12-Month Free Cash Flow Margin: -44.2%
One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Are We Hesitant About BLNK?
- Sales tumbled by 5.9% annually over the last two years, showing market trends are working against its favor during this cycle
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $0.90 per share, Blink Charging trades at 0.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BLNK.
NeoGenomics (NEO)
Trailing 12-Month Free Cash Flow Margin: -2.4%
Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics (NASDAQ:NEO) provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.
Why Should You Dump NEO?
- Modest revenue base of $709.2 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Push for growth has led to negative returns on capital, signaling value destruction
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
NeoGenomics’s stock price of $12.53 implies a valuation ratio of 87.5x forward P/E. Check out our free in-depth research report to learn more about why NEO doesn’t pass our bar.
EchoStar (SATS)
Trailing 12-Month Free Cash Flow Margin: -5.1%
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ:SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
Why Is SATS Risky?
- Annual sales declines of 6.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
EchoStar is trading at $123.68 per share, or 33.7x forward EV-to-EBITDA. To fully understand why you should be careful with SATS, check out our full research report (it’s free).
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.