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.
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. That said, here are two companies with net cash positions that balance growth with stability and one with hidden risks.
One Stock to Sell:
USANA (USNA)
Net Cash Position: $148.2 million (42.2% of Market Cap)
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.
Why Does USNA Worry Us?
- Products aren't resonating with the market as its revenue declined by 4.2% annually over the last three years
- Projected sales decline of 1.4% over the next 12 months indicates demand will continue deteriorating
- Sales were less profitable over the last three years as its earnings per share fell by 20.9% annually, worse than its revenue declines
At $19.20 per share, USANA trades at 10.2x forward P/E. Dive into our free research report to see why there are better opportunities than USNA.
Two Stocks to Buy:
Paymentus (PAY)
Net Cash Position: $280.6 million (5.9% of Market Cap)
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
Why Will PAY Outperform?
- Market share has increased this cycle as its 39% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 86.3% annual growth in its earnings per share outpaced its revenue
Paymentus’s stock price of $37.71 implies a valuation ratio of 50.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Skyward Specialty Insurance (SKWD)
Net Cash Position: $78.7 million (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 Do We Love SKWD?
- Net premiums earned expanded by 26.6% annually over the last two years, demonstrating exceptional market penetration this cycle
- Balance sheet strength has increased this cycle as its 29.3% annual book value per share growth over the last two years was exceptional
- Notable projected book value per share growth of 22.6% for the next 12 months hints at strong capital generation
Skyward Specialty Insurance is trading at $48.74 per share, or 2x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
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 Kadant (+351% 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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