Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. That said, here is one company with a net cash position that can continue growing sustainably and two with hidden risks.
Two Stocks to Sell:
PlayStudios (MYPS)
Net Cash Position: $98.07 million (62.8% of Market Cap)
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.
Why Do We Think Twice About MYPS?
- Annual revenue declines of 4.4% over the last two years indicate problems with its market positioning
- Historical operating margin losses point to an inefficient cost structure
- Push for growth has led to negative returns on capital, signaling value destruction
PlayStudios’s stock price of $1.26 implies a valuation ratio of 3.1x forward EV-to-EBITDA. To fully understand why you should be careful with MYPS, check out our full research report (it’s free).
Accenture (ACN)
Net Cash Position: $1.47 billion (0.8% of Market Cap)
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Are We Wary of ACN?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.8% over the last two years was below our standards for the business services sector
- Free cash flow margin dropped by 4.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Accenture is trading at $281.19 per share, or 21.1x forward P/E. If you’re considering ACN for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Skyward Specialty Insurance (SKWD)
Net Cash Position: $134 million (6.4% of Market Cap)
Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ: SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.
Why Is SKWD a Top Pick?
- Annual net premiums earned growth of 30.6% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 47.6% annual growth in its earnings per share outpaced its revenue
- Impressive 25% annual book value per share growth over the last two years indicates it’s building equity value this cycle
At $52 per share, Skyward Specialty Insurance trades at 2.4x forward P/B. 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 Strong Momentum 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 Comfort Systems (+782% 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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