Cash-generating companies often have the flexibility to invest, return capital to shareholders, or navigate downturns. The best of these businesses not only accumulate cash but deploy it strategically for growth.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are three cash-producing companies that excel at turning cash into shareholder value.
DigitalOcean (DOCN)
Trailing 12-Month Free Cash Flow Margin: 17.3%
Built for simplicity in a world of complex cloud solutions, DigitalOcean (NYSE:DOCN) provides a simplified cloud computing platform that enables developers and small businesses to quickly deploy and scale applications.
Why Does DOCN Stand Out?
- Average billings growth of 25.2% over the last year enhances its liquidity and shows there is steady demand for its products
- Projected revenue growth of 40.6% for the next 12 months is above its two-year trend, pointing to accelerating demand
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
DigitalOcean is trading at $126.50 per share, or 10x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
McDonald's (MCD)
Trailing 12-Month Free Cash Flow Margin: 28%
With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE:MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.
Why Are We Fans of MCD?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Highly-profitable franchise model results in strong unit economics and a best-in-class gross margin of 57.2%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
McDonald’s stock price of $256.20 implies a valuation ratio of 19.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Jack Henry (JKHY)
Trailing 12-Month Free Cash Flow Margin: 21.6%
Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ:JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.
Why Does JKHY Catch Our Eye?
- Share repurchases over the last two years enabled its annual earnings per share growth of 15.5% to outpace its revenue gains
- Industry-leading 24% return on equity demonstrates management’s skill in finding high-return investments
At $158.98 per share, Jack Henry trades at 22.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.