Free cash flow is one of the most reliable indicators of financial durability. These businesses not only generate cash but reinvest intelligently to sustain momentum.

Identifying the most effective companies isn’t easy, and that’s why we started StockStory. That said, here are three cash-producing companies that leverage their financial strength to beat the competition.

Coupang (CPNG)

Trailing 12-Month Free Cash Flow Margin: 3.8%

Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE: CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".

Why Could CPNG Be a Winner?

1. Active Customers have increased by an average of 11.3% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 35.4% outpaced its revenue gains
3. Free cash flow margin expanded by 9.1 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

At $28.97 per share, Coupang trades at 26.9x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Axon (AXON)

Trailing 12-Month Free Cash Flow Margin: 6.1%

Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.

Why Is AXON a Good Business?

1. Products are seeing elevated demand as its unit sales averaged 26.3% growth over the past two years
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 35.2% annually

Axon’s stock price of $607 implies a valuation ratio of 87.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

BioMarin Pharmaceutical (BMRN)

Trailing 12-Month Free Cash Flow Margin: 26.9%

Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ: BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.

Why Does BMRN Stand Out?

1. Solid 15.7% annual revenue growth over the last two years indicates its offering’s solve complex business issues
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.3% exceeded its revenue gains over the last five years
3. Free cash flow margin jumped by 17 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

BioMarin Pharmaceutical is trading at $51.46 per share, or 10.7x forward P/E. 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

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 Kadant (+351% 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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