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.
Airbnb (ABNB)
Net Cash Position: $7.5 billion (9% of Market Cap)
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Is ABNB a Top Pick?
- Nights and Experiences Booked have grown by 10.4% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Earnings per share grew by 49.4% annually over the last three years and trumped its peers
- Robust free cash flow margin of 39.7% gives it many options for capital deployment
Airbnb is trading at $135.03 per share, or 20.1x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
DexCom (DXCM)
Net Cash Position: $1.44 billion (4.4% of Market Cap)
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Should You Buy DXCM?
- Average organic revenue growth of 19.2% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 23.2% outpaced its revenue gains
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $83.71 per share, DexCom trades at 39x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Palomar Holdings (PLMR)
Net Cash Position: $119.3 million (3.1% of Market Cap)
Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ: PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.
Why Is PLMR a Good Business?
- Impressive 32.3% annual net premiums earned growth over the last two years indicates it’s winning market share this cycle
- Balance sheet strength has increased this cycle as its 35% annual book value per share growth over the last two years was exceptional
- Notable projected book value per share growth of 24.6% for the next 12 months hints at strong capital generation
Palomar Holdings’s stock price of $145 implies a valuation ratio of 4.3x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. 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
