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.
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:
Texas Capital Bank (TCBI)
Net Cash Position: $1.96 billion (44.1% of Market Cap)
Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares (NASDAQ: TCBI) is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond.
Why Are We Cautious About TCBI?
- Muted 2.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.8% annually
- Underwhelming 7.3% return on equity reflects management’s difficulties in finding profitable growth opportunities
Texas Capital Bank’s stock price of $97.19 implies a valuation ratio of 1.3x forward P/B. If you’re considering TCBI for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Braze (BRZE)
Net Cash Position: $299.9 million (8.9% of Market Cap)
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ: BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Why Could BRZE Be a Winner?
- Annual revenue growth of 25.6% over the past two years was outstanding, reflecting market share gains
- Billings growth has averaged 22.4% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
Braze is trading at $30.38 per share, or 3.9x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
United Therapeutics (UTHR)
Net Cash Position: $2.17 billion (10.4% of Market Cap)
Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ: UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.
Why Will UTHR Beat the Market?
- Market share has increased this cycle as its 19.1% annual revenue growth over the last two years was exceptional
- UTHR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
- Rising returns on capital show management is finding more attractive investment opportunities
At $485 per share, United Therapeutics trades at 16.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
