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.
Finding the best investments isn’t always easy, and that’s why we started StockStory. That said, here are three companies with net cash positions that can continue growing sustainably.
Freshworks (FRSH)
Net Cash Position: $899.4 million (27.8% 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?
- Annual revenue growth of 30.5% over the last five years was superb and indicates its market share is rising
- Ability to secure long-term commitments with customers is evident in its 20.9% ARR growth over the last year
- Prominent and differentiated software results in a stellar gross margin of 84.6%
Freshworks’s stock price of $11.09 implies a valuation ratio of 3.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Energy Recovery (ERII)
Net Cash Position: $66.55 million (8.2% of Market Cap)
Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ: ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors.
Why Does ERII Stand Out?
- Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
- Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 68%
- Share repurchases over the last two years enabled its annual earnings per share growth of 82% to outpace its revenue gains
Energy Recovery is trading at $15 per share, or 19.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Coastal Financial (CCB)
Net Cash Position: $712.3 million (45.5% of Market Cap)
Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ: CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.
Why Are We Bullish on CCB?
- Annual net interest income growth of 43.2% over the last five years was superb and indicates its market share increased during this cycle
- Differentiated product suite results in a Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 7.2%
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 22.7% annually
At $100.56 per share, Coastal Financial trades at 3.2x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-small-cap company Exlservice (+354% 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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