In a world where many businesses have shaky balance sheets, some have ignored the crowd and exercised prudence. These cash-heavy companies shine bright for their financial discipline, resilience, and ability to generate solid returns.
Even among the companies with sound capital structures, only a few stand out, and we’re here to help you identify them. That said, here are three companies with net cash positions that balance growth with stability.
Monday.com (MNDY)
Net Cash Position: $1.47 billion (9.8% of Market Cap)
Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ: MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.
Why Are We Bullish on MNDY?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Software is difficult to replicate at scale and leads to a best-in-class gross margin of 89.5%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $286 per share, Monday.com trades at 12.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Applied Materials (AMAT)
Net Cash Position: $486 million (0.4% of Market Cap)
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Are We Fans of AMAT?
- Annual revenue growth of 12.7% over the last five years was superb and indicates its market share increased during this cycle
- Excellent operating margin of 29.3% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Applied Materials is trading at $163.16 per share, or 17.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
IonQ (IONQ)
Net Cash Position: $570.9 million (6.6% of Market Cap)
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Are We Backing IONQ?
- Market share has increased this cycle as its 78.8% annual revenue growth over the last two years was exceptional
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
IonQ’s stock price of $33.60 implies a valuation ratio of 78.3x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.
