Businesses with strong free cash flow tend to be more adaptable and resilient. Some of these companies shine bright by using their cash wisely to strengthen their market positions.
Even among businesses with healthy cash flow, only a select few maximize its potential, and we’re here to pinpoint them. That said, here are three cash-producing companies that excel at turning cash into shareholder value.
Brinker International (EAT)
Trailing 12-Month Free Cash Flow Margin: 8.8%
Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Why Are We Fans of EAT?
- Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
- Revenue base of $5.73 billion gives it economies of scale and some negotiating power with suppliers
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities
Brinker International’s stock price of $139.12 implies a valuation ratio of 12x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Primoris (PRIM)
Trailing 12-Month Free Cash Flow Margin: 2.2%
Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Why Could PRIM Be a Winner?
- Impressive 16% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Sales pipeline is in good shape as its backlog averaged 86.5% growth over the past two years
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 29.1% annually
Primoris is trading at $124.01 per share, or 24.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Mastercard (MA)
Trailing 12-Month Free Cash Flow Margin: 50.3%
Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE: MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.
Why Is MA a Top Pick?
- Impressive 17% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23.1% exceeded its revenue gains over the last five years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $494.20 per share, Mastercard trades at 24.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
