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Stock impact report

3 Cash-Producing Stocks with Open Questions [Yahoo! Finance]

Marqeta, Inc. - Class A (MQ) 
Company Research Source: Yahoo! Finance
Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. That said, here are three cash-producing companies to steer clear of and a few better alternatives. Trailing 12-Month Free Cash Flow Margin: 17.9% Powering the cards behind innovative fintech services like Block's Cash App, Marqeta (NASDAQ:MQ) provides a cloud-based platform that allows businesses to create customized payment card programs and process card transactions. Why Does MQ Fall Short? Sales tumbled by 12.1% annually over the last two years, showing industry trends like AI are working against its favor High servicing costs result in a relatively inferior gross margin of 70.6% that must be offset through increased usage Inability to adjust its cost structure while its revenue declined over the last year led to a 4 percentage point drop in the company's operating margin At $4.49 per share, Marqeta trades at 2.8x forward price-to-sales. Read our f Show less Read more
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