Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are two cash-producing companies that excel at turning cash into shareholder value and one best left off your watchlist.
One Stock to Sell:
Bentley Systems (BSY)
Trailing 12-Month Free Cash Flow Margin: 31.5%
Pioneering the concept of "digital twins" for infrastructure projects long before it became an industry buzzword, Bentley Systems (NASDAQ: BSY) provides software solutions that help engineers design, build, and operate infrastructure projects across sectors including roads, bridges, utilities, mining, and industrial facilities.
Why Are We Cautious About BSY?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 10.9% underwhelmed
- Projected sales growth of 9.7% for the next 12 months suggests sluggish demand
- Operating margin expanded by 2.5 percentage points over the last year as it scaled and became more efficient
Bentley Systems is trading at $46.71 per share, or 9.7x forward price-to-sales. Check out our free in-depth research report to learn more about why BSY doesn’t pass our bar.
Two Stocks to Watch:
Atlassian (TEAM)
Trailing 12-Month Free Cash Flow Margin: 26.7%
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Does TEAM Stand Out?
- Impressive 21.4% annual revenue growth over the last two years indicates it’s winning market share
- Superior software functionality and low servicing costs are reflected in its stellar gross margin of 83.5%
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $158.50 per share, Atlassian trades at 6.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Amgen (AMGN)
Trailing 12-Month Free Cash Flow Margin: 32.1%
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Are We Fans of AMGN?
- Annual revenue growth of 15.8% over the last two years beat the sector average and underscores the unique value of its offerings
- Revenue base of $35.97 billion gives it economies of scale and some negotiating power
- Strong free cash flow margin of 29.9% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Amgen’s stock price of $320.20 implies a valuation ratio of 15.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Tecnoglass (+1,754% 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
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