A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
Just because a business has cash doesn’t mean it’s a good investment. Luckily, StockStory is here to help you separate the winners from the losers. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one that may struggle.
One Stock to Sell:
Box (BOX)
Net Cash Position: $103.6 million (2.3% of Market Cap)
Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE:BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.
Why Do We Think Twice About BOX?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 10% underwhelmed
- Projected sales growth of 7.9% for the next 12 months suggests sluggish demand
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
At $30.86 per share, Box trades at 3.9x forward price-to-sales. If you’re considering BOX for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Veeva Systems (VEEV)
Net Cash Position: $6.32 billion (13.1% of Market Cap)
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
- Highly efficient business model is illustrated by its impressive 26.9% operating margin, and it turbocharged its profits by achieving some fixed cost leverage
- Strong free cash flow margin of 44.7% enables it to reinvest or return capital consistently
Veeva Systems’s stock price of $297 implies a valuation ratio of 14.9x 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.
Customers Bancorp (CUBI)
Net Cash Position: $2.61 billion (113% of Market Cap)
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE:CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Why Will CUBI Beat the Market?
- Annual net interest income growth of 14.2% over the past five years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 19.5% over the last five years outstripped its revenue performance
- Annual tangible book value per share growth of 18.1% over the last five years was superb and indicates its capital strength increased during this cycle
Customers Bancorp is trading at $67.76 per share, or 1.1x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
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 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-small-cap company Exlservice (+354% 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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