Free cash flow is one of the most reliable indicators of financial durability. These businesses not only generate cash but reinvest intelligently to sustain momentum.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here are three cash-producing companies that leverage their financial strength to beat the competition.
Veeva Systems (VEEV)
Trailing 12-Month Free Cash Flow Margin: 43.9%
Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE: VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.
Why Are We Fans of VEEV?
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Healthy operating margin of 27.9% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs
- Robust free cash flow margin of 43.9% gives it many options for capital deployment
Veeva Systems’s stock price of $239.75 implies a valuation ratio of 11.8x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Booking (BKNG)
Trailing 12-Month Free Cash Flow Margin: 31.9%
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Do We Like BKNG?
- Strong consumer demand for its platform drove 17.6% annual revenue growth over the last three years, outperforming sector peers
- Share repurchases over the last three years enabled its annual earnings per share growth of 34.1% to outpace its revenue gains
- 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
At $4,897 per share, Booking trades at 14.9x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
McKesson (MCK)
Trailing 12-Month Free Cash Flow Margin: 1.6%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Is MCK a Good Business?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 15.3% annual sales growth over the last two years
- Unparalleled scale of $387.1 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
McKesson is trading at $857.95 per share, or 21.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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