Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth.
Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. Keeping that in mind, here is one unprofitable company investing heavily to secure market share and two that could struggle to survive.
Two Stocks to Sell:
OneWater (ONEW)
Trailing 12-Month GAAP Operating Margin: -5.3%
A public company since early 2020, OneWater Marine (NASDAQ: ONEW) sells boats, yachts, and other marine products.
Why Do We Steer Clear of ONEW?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Earnings per share fell by 62.5% annually over the last three years while its revenue was flat, showing each sale was less profitable
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
OneWater’s stock price of $11.52 implies a valuation ratio of 20.5x forward P/E. Check out our free in-depth research report to learn more about why ONEW doesn’t pass our bar.
JELD-WEN (JELD)
Trailing 12-Month GAAP Operating Margin: -9.1%
Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.
Why Do We Think JELD Will Underperform?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $1.61 per share, JELD-WEN trades at 10.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than JELD.
One Stock to Watch:
SentinelOne (S)
Trailing 12-Month GAAP Operating Margin: -29.9%
Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.
Why Do We Like S?
- Ability to secure long-term commitments with customers is evident in its 22.8% ARR growth over the last year
- Estimated revenue growth of 19.4% for the next 12 months implies its momentum over the last two years will continue
- Free cash flow margin is forecasted to grow by 7.8 percentage points in the coming year, potentially giving the company more chips to play with
SentinelOne is trading at $14.92 per share, or 4.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
