A clean balance sheet can signal disciplined management and stability. It also means a company can expand and thrive without relying on borrowed capital.
Finding the best investments isn’t always easy, and that’s why we started StockStory. Keeping that in mind, here are three companies with net cash positions that can leverage their balance sheets to grow.
Dynatrace (DT)
Net Cash Position: $1.26 billion (8.4% of Market Cap)
With its platform processing over 30 trillion pieces of IT performance data daily, Dynatrace (NYSE: DT) provides an AI-powered platform that helps organizations monitor, secure, and optimize their applications and IT infrastructure across cloud environments.
Why Are We Positive On DT?
- Average billings growth of 18.9% over the last year enhances its liquidity and shows there is steady demand for its products
- Prominent and differentiated software leads to a top-tier gross margin of 81.9%
- Strong free cash flow margin of 26.2% enables it to reinvest or return capital consistently
At $49.92 per share, Dynatrace trades at 7.4x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Freshworks (FRSH)
Net Cash Position: $899.4 million (28.3% 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 Do We Like FRSH?
- Market share has increased as its 30.5% annual revenue growth over the last five years was exceptional
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Prominent and differentiated software results in a top-tier gross margin of 84.6%
Freshworks’s stock price of $10.86 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.
Monster (MNST)
Net Cash Position: $1.87 billion (2.9% of Market Cap)
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Will MNST Beat the Market?
- Highly efficient business model is illustrated by its impressive 27.5% operating margin
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
- ROIC punches in at 37.6%, illustrating management’s expertise in identifying profitable investments
Monster is trading at $68 per share, or 33.1x 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 .
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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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