Companies with more cash than debt often have stronger financial flexibility, making them attractive in uncertain markets. With interest payments less of a worry, these businesses can invest more in growth, innovation, or buybacks and dividends.
Not all companies with sound capital structures are created equal, and StockStory is here to help you find the best. Keeping that in mind, here are three companies with net cash positions that can continue growing sustainably.
ServiceNow (NOW)
Net Cash Position: $2.75 billion (2.5% of Market Cap)
Built on a single code base that processes more than 80 billion workflows and 6.5 trillion transactions annually, ServiceNow (NYSE: NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Will NOW Beat the Market?
- Ability to secure long-term commitments with customers is evident in its 21.8% ARR growth over the last year
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- NOW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
ServiceNow is trading at $104.75 per share, or 6.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Guidewire Software (GWRE)
Net Cash Position: $45.3 million (0.4% of Market Cap)
With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.
What Makes GWRE Stand Out?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 20.6% over the last year
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Excellent operating margin of 8.2% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
Guidewire Software’s stock price of $141 implies a valuation ratio of 7.3x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
American Superconductor (AMSC)
Net Cash Position: $143.6 million (8.5% of Market Cap)
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Is AMSC a Good Business?
- Annual revenue growth of 43.3% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow margin increased by 24.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
At $35.65 per share, American Superconductor trades at 33.9x forward P/E. Is now a good time to buy? Find out in 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
