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.
Freshworks (FRSH)
Net Cash Position: $751 million (29.5% of Market Cap)
Starting as a customer service solution before expanding into a comprehensive software suite, Freshworks (NASDAQ: FRSH) provides AI-powered software-as-a-service solutions that help companies manage customer service, IT support, sales, and marketing functions.
Why Are We Fans of FRSH?
- 25.8% annual revenue growth over the last five years surpassed the sector average as its software resonated with customers
- Prominent and differentiated software leads to a top-tier gross margin of 85%
- Robust free cash flow margin of 25.7% gives it many options for capital deployment
At $9.28 per share, Freshworks trades at 2.7x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
EPAM (EPAM)
Net Cash Position: $749 million (15.5% of Market Cap)
Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.
Why Are We Positive on EPAM?
- Market share has increased this cycle as its 14.8% annual revenue growth over the last five years was exceptional
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 12.2% annually
- Industry-leading 22.3% return on capital demonstrates management’s skill in finding high-return investments
EPAM’s stock price of $93.27 implies a valuation ratio of 7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Federated Hermes (FHI)
Net Cash Position: $39.03 million (0.9% of Market Cap)
With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE: FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.
Why Will FHI Outperform?
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ROE punches in at 25.7%, illustrating management’s expertise in identifying profitable investments
Federated Hermes is trading at $57.89 per share, or 11.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
