3 Cash-Producing Stocks with Promising Prospects

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.

Even among businesses with healthy cash flow, only a select few maximize its potential, and we’re here to pinpoint them. Keeping that in mind, here are three cash-producing companies that leverage their financial strength to beat the competition.

Take-Two (TTWO)

Trailing 12-Month Free Cash Flow Margin: 7.3%

Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world’s largest video game publishers.

Why Is TTWO Interesting?

1. Exciting sales outlook for the upcoming 12 months calls for 27.9% growth, an acceleration from its three-year trend
2. Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 14.9%
3. Free cash flow margin increased by 4.9 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Take-Two is trading at $201.45 per share, or 25.6x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Airbnb (ABNB)

Trailing 12-Month Free Cash Flow Margin: 37.7%

Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.

Why Do We Love ABNB?

1. Nights and Experiences Booked have increased by an average of 9.1% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Healthy EBITDA margin of 35.7% shows it’s a well-run company with efficient processes
3. ABNB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $123.57 per share, Airbnb trades at 14x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Philip Morris (PM)

Trailing 12-Month Free Cash Flow Margin: 26.2%

Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Why Are We Bullish on PM?

1. Products are seeing elevated demand as its unit sales averaged 3% growth over the past two years
2. Products command premium prices and result in a best-in-class gross margin of 66%
3. Robust free cash flow margin of 27.3% gives it many options for capital deployment

Philip Morris’s stock price of $183.63 implies a valuation ratio of 21.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.