Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.

Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. That said, here are three profitable companies that leverage their financial strength to beat the competition.

Cadre (CDRE)

Trailing 12-Month GAAP Operating Margin: 9.6%

Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.

Why Are We Fans of CDRE?

1. Annual revenue growth of 11.8% over the past two years was outstanding, reflecting market share gains this cycle
2. Market share is on track to rise over the next 12 months as its 17.6% projected revenue growth implies demand will accelerate from its two-year trend
3. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient

Cadre is trading at $30.34 per share, or 1.8x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

NMI Holdings (NMIH)

Trailing 12-Month GAAP Operating Margin: 72.8%

Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ: NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.

Why Are We Positive On NMIH?

1. Solid 10.2% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Pre-tax profit margin expanded by 20.4 percentage points over the last five years as it scaled and became more efficient
3. Balance sheet strength has increased this cycle as its 16.5% annual book value per share growth over the last five years was exceptional

NMI Holdings’s stock price of $37.15 implies a valuation ratio of 1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Chevron (CVX)

Trailing 12-Month GAAP Operating Margin: 10.2%

Operating everything from deepwater drilling rigs to corner gas stations, Chevron (NYSE: CVX) explores for, produces, and transports crude oil and natural gas, then refines that crude oil into gasoline, diesel, and other petroleum products.

Why Do We Like CVX?

1. 4.1% annual revenue growth over the last ten years surpassed the sector average as its products resonated with customers
2. Enormous revenue base of $190 billion provides significant leverage in supplier negotiations
3. Solid free cash flow generation relative to most peers gives it a cushion and grants it various reinvestment opportunities

At $185.01 per share, Chevron trades at 12x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

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