Adobe, Simply Good Foods, Hexcel Flagged as Cash-Rich but Overvalued

Investment research firm StockStory on June 5, 2026 warned that three cash-generating companies—Adobe (NASDAQ:ADBE), Simply Good Foods (NASDAQ:SMPL), and Hexcel (NYSE:HXL)—may not be sound investments due to ineffective capital allocation and high valuations. Adobe, with a trailing 12-month free cash flow margin of 42.2%, trades at 4 times forward price-to-sales at $258.82 per share. Simply Good Foods, at $11.66, carries a 6.9x forward price-to-earnings ratio despite a 10.3% FCF margin. Hexcel’s $91.07 stock price implies a 37.3x forward P/E on a 10.6% FCF margin. StockStory said robust cash flow alone does not guarantee outperformance, highlighting allocation risks in these technology, consumer staples, and aerospace names.