Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here is one profitable company that balances growth and profitability and two that may struggle to keep up.
Two Stocks to Sell:
Hillman (HLMN)
Trailing 12-Month GAAP Operating Margin: 6.1%
Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Why Is HLMN Not Exciting?
- Sales trends were unexciting over the last two years as its 1.6% annual growth was below the typical industrials company
- Subpar operating margin of 3.9% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Low returns on capital reflect management’s struggle to allocate funds effectively
Hillman’s stock price of $9.32 implies a valuation ratio of 15.9x forward P/E. Dive into our free research report to see why there are better opportunities than HLMN.
Verisk (VRSK)
Trailing 12-Month GAAP Operating Margin: 43.9%
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Do We Think Twice About VRSK?
- Annual revenue growth of 2.1% over the last five years was below our standards for the business services sector
At $230.11 per share, Verisk trades at 32.1x forward P/E. Read our free research report to see why you should think twice about including VRSK in your portfolio.
One Stock to Buy:
HCI Group (HCI)
Trailing 12-Month GAAP Operating Margin: 27.7%
Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE:HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.
Why Are We Backing HCI?
- Net premiums earned expanded by 26.7% annually over the last two years, demonstrating exceptional market penetration this cycle
- Balance sheet strength has increased this cycle as its 63.4% annual book value per share growth over the last two years was exceptional
- Book value per share outlook for the upcoming 12 months is outstanding and shows it’s on track to build significant equity value
HCI Group is trading at $189.70 per share, or 2.9x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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