Businesses with strong free cash flow tend to be more adaptable and resilient. Some of these companies shine bright by using their cash wisely to strengthen their market positions.
Identifying the most effective companies isn’t easy, and that’s why we started StockStory. Keeping that in mind, here are three cash-producing companies that excel at turning cash into shareholder value.
ServiceNow (NOW)
Trailing 12-Month Free Cash Flow Margin: 33.4%
Built on a single code base that processes more than 80 billion workflows and 6.5 trillion transactions annually, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Do We Love NOW?
- ARR growth averaged 22.3% over the last year, showing customers are willing to take multi-year bets on its software
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
ServiceNow is trading at $125.00 per share, or 6.9x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Brady (BRC)
Trailing 12-Month Free Cash Flow Margin: 11.2%
Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE:BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.
Why Is BRC a Good Business?
- Impressive 9.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Projected revenue growth of 38.2% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 15.4% exceeded its revenue gains over the last five years
At $97.02 per share, Brady trades at 16.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Darling Ingredients (DAR)
Trailing 12-Month Free Cash Flow Margin: 13.5%
Turning what others consider waste into valuable resources, Darling Ingredients (NYSE:DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications.
Why Do We Like DAR?
- Efficiency rose over the last year as its Operating margin increased by 9.5 percentage points
- Free cash flow margin expanded by 3.8 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Darling Ingredients’s stock price of $59.43 implies a valuation ratio of 9.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.