A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one that may struggle.
One Stock to Sell:
Commvault (CVLT)
Net Cash Position: $12.18 million (0.2% of Market Cap)
Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ:CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.
Why Does CVLT Worry Us?
- Offerings struggled to generate meaningful interest as its average billings growth of 12.2% over the last year did not impress
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Operating margin fell by 1.5 percentage points over the last year as it prioritized growth over profits
Commvault is trading at $134.03 per share, or 4.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CVLT.
Two Stocks to Watch:
FirstSun Capital Bancorp (FSUN)
Net Cash Position: $766.8 million (39% of Market Cap)
Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ:FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.
Why Do We Like FSUN?
- Annual net interest income growth of 21.7% over the past five years was outstanding, reflecting market share gains this cycle
- Exciting net interest income outlook for the upcoming 12 months calls for 47.9% growth, an acceleration from its five-year trend
- Efficiency ratio improved by 12 percentage points over the last five years as it scaled
At $39.77 per share, FirstSun Capital Bancorp trades at 1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
First BanCorp (FBP)
Net Cash Position: $360.6 million (8.2% of Market Cap)
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE:FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
Why Are We Positive on FBP?
- Strong performance of its loan book is reflected in its best-in-class net interest margin of 4.8%
- Efficiency ratio improvement of 12.5 percentage points over the last five years demonstrates its ability to scale effectively
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
First BanCorp’s stock price of $29.07 implies a valuation ratio of 2.2x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.