Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here is one unprofitable company investing heavily to secure market share and two best left off your radar.
Trailing 12-Month GAAP Operating Margin: -50.3%
Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ:SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
Products and services fail to spark excitement with consumers, as seen in its flat sales over the last five years
Eroding returns on capital from an already low base indicate that management's recent investments are destroying value
High net-debt-to-EBITDA ratio of 9× increases the risk of forced asset sales or dilutive financing if operational performance weakens
E.W. Scripps's stock price of $3.12 implies a valuation ratio of 313.5x forward P/E. To fully understand why you should be careful with SSP, check out our full research report (it's free).
Trailing 12-Month GAAP Operating Margin: -95.7%
Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE:ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.
Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.1% annually over the last five years
Earnings per share have dipped by 7.3% annually over the past four years, which is concerning because stock prices follow EPS over the long term
Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned
At $12.05 per share, Alight trades at 2.6x forward P/E. Read our free research report to see why you should think twice about including ALIT in your portfolio, it's free.
Trailing 12-Month GAAP Operating Margin: -103%
Operating one of the largest dairy-based renewable natural gas facilities in the United States, Gevo (NASDAQ:GEVO) produces sustainable aviation fuel and other renewable hydrocarbon fuels from plant-based feedstocks like corn.
Impressive 19.6% annual revenue growth over the last ten years indicates it's winning market share this cycle
Gevo is trading at $1.60 per share, or 7.5x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it's free.
WHILE YOU'RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.