A clean balance sheet can signal disciplined management and stability. It also means a company can expand and thrive without relying on borrowed capital.
Even among the companies with sound capital structures, only a few stand out, and we’re here to help you identify them. Keeping that in mind, here are three companies with net cash positions that can leverage their balance sheets to grow.
ServiceNow (NOW)
Net Cash Position: $3.72 billion (1.9% of Market Cap)
Built on a single code base that processes over 4 billion workflow transactions daily, 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 Outperform?
- Sales pipeline is in good shape as its current remaining performance obligations (cRPO) averaged 22.9% growth over the last year
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Robust free cash flow margin of 31.9% gives it many options for capital deployment
At $918.90 per share, ServiceNow trades at 13.4x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Planet Labs (PL)
Net Cash Position: $254 million (6.4% of Market Cap)
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Does PL Stand Out?
- Market share has increased this cycle as its 22.3% annual revenue growth over the last five years was exceptional
- Additional sales over the last two years increased its profitability as the 34.2% annual growth in its earnings per share outpaced its revenue
- Historical investments are beginning to pay off as its returns on capital are growing
Planet Labs is trading at $13.03 per share, or 10,904.3x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Hamilton Insurance Group (HG)
Net Cash Position: $921.6 million (37.1% of Market Cap)
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Do We Like HG?
- Impressive 49.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Market penetration was impressive this cycle as its net premiums earned expanded by 26% annually over the last two years
- Combined ratio expanded by 32.5 percentage points over the last two years as it scaled and became more efficient
Hamilton Insurance Group’s stock price of $25.25 implies a valuation ratio of 0.9x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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