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.
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 balance growth with stability and one best left off your watchlist.
One Stock to Sell:
UiPath (PATH)
Net Cash Position: $1.56 billion (22.2% of Market Cap)
Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE: PATH) makes software that helps companies automate repetitive computer tasks.
Why Does PATH Fall Short?
- Products, pricing, or go-to-market strategy may need some adjustments as its 5.7% average billings growth over the last year was weak
- Estimated sales growth of 6.4% for the next 12 months implies demand will slow from its three-year trend
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
UiPath is trading at $13.07 per share, or 4.8x forward price-to-sales. To fully understand why you should be careful with PATH, check out our full research report (it’s free).
Two Stocks to Watch:
Grand Canyon Education (LOPE)
Net Cash Position: $199.3 million (3.6% of Market Cap)
Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.
Why Does LOPE Stand Out?
- Excellent operating margin of 26.5% highlights the efficiency of its business model
- ROIC punches in at 30.2%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets
- Returns on capital are growing as management capitalizes on its market opportunities
At $195.74 per share, Grand Canyon Education trades at 21.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
CSW (CSWI)
Net Cash Position: $203.2 million (3.7% of Market Cap)
With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ: CSWI) offers special chemicals, coatings, sealants, and lubricants for various industries.
Why Will CSWI Outperform?
- Impressive 17.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 21.9% outpaced its revenue gains
- Strong free cash flow margin of 15% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
CSW’s stock price of $327.17 implies a valuation ratio of 35.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 176% over the last five years.
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.
