{"id":244272,"date":"2026-01-21T11:46:21","date_gmt":"2026-01-21T11:46:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/244272\/"},"modified":"2026-01-21T11:46:21","modified_gmt":"2026-01-21T11:46:21","slug":"3-cash-burning-stocks-were-skeptical-of","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/244272\/","title":{"rendered":"3 Cash-Burning Stocks We\u2019re Skeptical Of"},"content":{"rendered":"\n<p class=\"yf-vbsvxt\">Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding. Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.<\/p>\n<p class=\"yf-vbsvxt\">Not all companies are worth the risk, and that\u2019s why we built StockStory &#8211; to help you spot the red flags. That said, here are three cash-burning companies that don\u2019t make the cut and some better opportunities instead.<\/p>\n<p class=\"yf-vbsvxt\">Trailing 12-Month Free Cash Flow Margin: -2.2%<\/p>\n<p class=\"yf-vbsvxt\">Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.<\/p>\n<p class=\"yf-vbsvxt\">Why Do We Steer Clear of NMRK?<\/p>\n<p class=\"yf-vbsvxt\">10.3% annual revenue growth over the last five years was slower than its consumer discretionary peers<\/p>\n<p class=\"yf-vbsvxt\">Cash burn makes us question whether it can achieve sustainable long-term growth<\/p>\n<p class=\"yf-vbsvxt\">Returns on capital haven\u2019t budged, indicating management couldn\u2019t drive additional value creation<\/p>\n<p class=\"yf-vbsvxt\">At $17.44 per share, Newmark trades at 9.9x forward P\/E. <a href=\"https:\/\/stockstory.org\/us\/stocks\/nasdaq\/nmrk?utm_source=screener&amp;utm_medium=yahoo&amp;utm_campaign=underperformScreenerCTA&amp;utm_article=C1t3YmkAbkY%3D&amp;utm_ticker=NMRK\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Read our free research report to see why you should think twice about including NMRK in your portfolio, it\u2019s free;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Read our free research report to see why you should think twice about including NMRK in your portfolio, it\u2019s free<\/a>.<\/p>\n<p class=\"yf-vbsvxt\">Trailing 12-Month Free Cash Flow Margin: -41.8%<\/p>\n<p class=\"yf-vbsvxt\">Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.<\/p>\n<p class=\"yf-vbsvxt\">Why Are We Cautious About RKLB?<\/p>\n<p class=\"yf-vbsvxt\">Poor expense management has led to operating margin losses<\/p>\n<p class=\"yf-vbsvxt\">Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term<\/p>\n<p class=\"yf-vbsvxt\">Cash-burning tendencies make us wonder if it can sustainably generate shareholder value<\/p>\n<p class=\"yf-vbsvxt\">Rocket Lab\u2019s stock price of $96.30 implies a valuation ratio of 63.2x forward price-to-sales. <a href=\"https:\/\/stockstory.org\/us\/stocks\/nasdaq\/rklb?utm_source=screener&amp;utm_medium=yahoo&amp;utm_campaign=underperformScreenerCTA&amp;utm_article=C1t3YmkAbkY%3D&amp;utm_ticker=NMRK\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Dive into our free research report to see why there are better opportunities than RKLB;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Dive into our free research report to see why there are better opportunities than RKLB<\/a>.<\/p>\n<p class=\"yf-vbsvxt\">Trailing 12-Month Free Cash Flow Margin: -358%<\/p>\n<p class=\"yf-vbsvxt\">Pioneering a drug delivery platform that can eliminate the need for monthly eye injections, Ocular Therapeutix (NASDAQ:OCUL) develops sustained-release treatments for eye diseases using its proprietary ELUTYX bioresorbable hydrogel technology that gradually releases medication.<\/p>\n<p class=\"yf-vbsvxt\">Why Do We Avoid OCUL?<\/p>\n<p class=\"yf-vbsvxt\">Sales tumbled by 1.7% annually over the last two years, showing market trends are working against its favor during this cycle<\/p>\n<p class=\"yf-vbsvxt\">206.8 percentage point decline in its free cash flow margin over the last five years reflects the company\u2019s increased investments to defend its market position<\/p>\n<p class=\"yf-vbsvxt\">Short cash runway increases the probability of a capital raise that dilutes existing shareholders<\/p>\n","protected":false},"excerpt":{"rendered":"Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure&hellip;\n","protected":false},"author":2,"featured_media":244273,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[138,12684,48540,111,139,69,143023,14892],"class_list":["post-244272","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-capital-markets","tag-free-cash-flow","tag-new-zealand","tag-newzealand","tag-nz","tag-ocular-therapeutix","tag-rocket-lab"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/244272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=244272"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/244272\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/244273"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=244272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=244272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=244272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}