Air Products and Chemicals' free cash flow has been declining since 2022, combined with slower dividend growth, due to massive investments in hydrogen production and a lack of clear capital allocation strategy from management.
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6 Stocks with Dangerous Free Cash Flow Trend - Should you Sell them or Buy More?
Dividend GuyMar 15, 2026
The Dividend Guy podcast discusses the importance of free cash flow (FCF) in stock analysis, highlighting six companies with concerning FCF trends: Pepsi, Exchange Income Corporation, M&M's, Texas Instruments, Nike, and Air Products and Chemicals. The hosts emphasize that declining FCF isn't always a sell signal, often being a result of significant investments in growth or operational changes, and advise investors to dig deeper into the context and management's strategy before making decisions.
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Nike is facing headwinds from tariffs and a strategic shift away from wholesale, leading to increased spending on marketing and inventory discounts, with a potential turnaround dependent on the success of its comeback plan.
Texas Instruments is undergoing a massive 6-year, $30 billion investment in fabrication plants and intentionally grew inventory, leading to a significant drop in free cash flow, but demand for chips is expected to rebound.
Mondelēz faces significant challenges with rising cocoa prices squeezing margins, and while investing in modernization, the core issue of inflation makes its declining cash flow a real problem.
Pepsi's free cash flow trend is down due to significant investments in automation and productivity improvements, with management expecting better cash flow moving forward.
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MDLZ
sell opened Mar 15, 2026
-11.26%