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 balance growth with stability.
The Trade Desk (TTD)
Net Cash Position: $1.41 billion (3.9% of Market Cap)
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ: TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.
Why Will TTD Beat the Market?
- Billings growth has averaged 26.1% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Healthy operating margin of 17.6% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
The Trade Desk is trading at $73.40 per share, or 12.5x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Monolithic Power Systems (MPWR)
Net Cash Position: $1.03 billion (2.9% of Market Cap)
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Do We Love MPWR?
- Annual revenue growth of 13.1% over the past two years was outstanding, reflecting market share gains this cycle
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Monolithic Power Systems’s stock price of $742 implies a valuation ratio of 43.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
First Financial Bankshares (FFIN)
Net Cash Position: $833.1 million (15.7% of Market Cap)
With roots dating back to 1890 and a network spanning over 70 locations across the Lone Star State, First Financial Bankshares (NASDAQ: FFIN) is a Texas-focused regional bank providing commercial banking, trust services, and wealth management across numerous communities throughout the state.
Why Is FFIN Interesting?
- Net interest margin increased by 23.3 basis points (100 basis points = 1 percentage point) over the last two years, giving the company more capital to invest or return to shareholders
- Exciting tangible book value per share outlook for the upcoming 12 months calls for 16.5% growth, an acceleration from its two-year trend
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $37.32 per share, First Financial Bankshares trades at 3x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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 5 Strong Momentum 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
