3 Cash-Burning Stocks We Keep Off Our Radar

Barchart·03/23/2026 04:08:14

While some companies burn cash to fuel expansion, others struggle to turn spending into sustainable growth. A high cash burn rate without a strong balance sheet can leave investors exposed to significant downside.

Just because a company is spending heavily doesn’t mean it’s on the right track, and StockStory is here to separate the winners from the losers. Keeping that in mind, here are three cash-burning companies that don’t make the cut and some better opportunities instead.

ChargePoint (CHPT)

Trailing 12-Month Free Cash Flow Margin: -16.3%

The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE:CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.

Why Are We Hesitant About CHPT?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.9% annually over the last two years
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly

ChargePoint’s stock price of $5.33 implies a valuation ratio of 0.3x forward price-to-sales. Check out our free in-depth research report to learn more about why CHPT doesn’t pass our bar.

AMC Entertainment (AMC)

Trailing 12-Month Free Cash Flow Margin: -7.5%

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.

Why Does AMC Give Us Pause?

1. Sales were flat over the last two years, indicating it’s failed to expand its business
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $1 per share, AMC Entertainment trades at 14.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than AMC.

agilon health (AGL)

Trailing 12-Month Free Cash Flow Margin: -2%

Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.

Why Do We Think Twice About AGL?

1. Sales are projected to tank by 8% over the next 12 months as demand evaporates
2. Efficiency has decreased over the last five years as its adjusted operating margin fell by 3.6 percentage points
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

agilon health is trading at $0.43 per share, or 3.3x forward EV-to-EBITDA. To fully understand why you should be careful with AGL, check out our full research report (it’s free).

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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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