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 are two companies with net cash positions that balance growth with stability and one with hidden risks.
One Stock to Sell:
Tecnoglass (TGLS)
Net Cash Position: $13.75 million (0.6% of Market Cap)
The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.
Why Does TGLS Fall Short?
- Annual revenue growth of 7.3% over the last two years was below our standards for the industrials sector
- Earnings per share have contracted by 3.2% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 10.4 percentage points
Tecnoglass is trading at $46.58 per share, or 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than TGLS.
Two Stocks to Buy:
Erie Indemnity (ERIE)
Net Cash Position: $574.1 million (3.9% of Market Cap)
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ: ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Why Do We Love ERIE?
- Annual revenue growth of 13.2% over the past two years was outstanding, reflecting market share gains this cycle
- Balance sheet strength has increased this cycle as its 13.1% annual book value per share growth over the last five years was exceptional
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Erie Indemnity’s stock price of $282.82 implies a valuation ratio of 20.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Western Alliance Bancorporation (WAL)
Net Cash Position: $963 million (11% of Market Cap)
Operating through five distinct regional banking divisions across the western United States, Western Alliance Bancorporation (NYSE: WAL) provides commercial banking, treasury management, mortgage services, and specialized financial solutions through its banking divisions and subsidiaries.
Why Is WAL a Good Business?
- Impressive 19.7% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 12.5% annually
- Balance sheet strength has increased this cycle as its 15.1% annual tangible book value per share growth over the last five years was exceptional
At $80.26 per share, Western Alliance Bancorporation trades at 1.2x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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