3 Cash-Producing Stocks with Solid Fundamentals

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 reinvest wisely to drive long-term success.

VeriSign (VRSN)

Trailing 12-Month Free Cash Flow Margin: 59.4%

As the silent guardian of the internet's roadmap, VeriSign (NASDAQ:VRSN) operates the authoritative registry for .com and .net domain names, enabling websites to be found reliably when users type web addresses.

Why Does VRSN Catch Our Eye?

1. Billings have averaged 15.3% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Software is difficult to replicate at scale and leads to a best-in-class gross margin of 87.9%
3. VRSN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

VeriSign’s stock price of $271 implies a valuation ratio of 15.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

MercadoLibre (MELI)

Trailing 12-Month Free Cash Flow Margin: 30.6%

Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.

Why Are We Bullish on MELI?

1. Unique Active Buyers have increased by an average of 20.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Grip over its ecosystem is highlighted by its ability to grow engagement while increasing the average revenue per user by 15.5% annually
3. Robust free cash flow margin of 31.1% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

MercadoLibre is trading at $2,335 per share, or 23.4x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.

Verisk (VRSK)

Trailing 12-Month Free Cash Flow Margin: 34.2%

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Why Is VRSK Interesting?

1. Constant currency growth averaged 7.4% over the past two years, showing it can expand globally regardless of the macroeconomic environment
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
3. Returns on capital are growing as management capitalizes on its market opportunities

At $271.48 per share, Verisk trades at 36.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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-small-cap company Comfort Systems (+782% 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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