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.
Financial flexibility is valuable, but it’s not everything - at StockStory, we help you find the stocks that can not only survive but also outperform. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two that may struggle.
Two Stocks to Sell:
Asana (ASAN)
Net Cash Position: $211.5 million (6.9% of Market Cap)
Founded in 2008 by Facebook’s co-founder Dustin Moskovitz, Asana (NYSE: ASAN) is a cloud-based project management software, where you can plan and assign tasks to employees and monitor and discuss progress of work.
Why Is ASAN Not Exciting?
- Average billings growth of 4.3% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Net revenue retention rate of 96.3% shows it has a tough time retaining customers
- Software platform has intricate integration requirements for its enterprise clients, triggering long sales cycles that limit new customer additions
At $13.24 per share, Asana trades at 3.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ASAN.
National Bank Holdings (NBHC)
Net Cash Position: $1.42 billion (101% of Market Cap)
Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.
Why Do We Think Twice About NBHC?
- Annual revenue growth of 3.8% over the last two years was below our standards for the bank sector
- Projected 2.1 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
- 4% annual tangible book value per share growth over the last five years was slower than its bank peers
National Bank Holdings’s stock price of $36.80 implies a valuation ratio of 1x forward P/B. Check out our free in-depth research report to learn more about why NBHC doesn’t pass our bar.
One Stock to Watch:
AMD (AMD)
Net Cash Position: $3.15 billion (1.5% of Market Cap)
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Could AMD Be a Winner?
- Impressive 30.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Demand will likely accelerate over the next 12 months as its forecasted revenue growth of 17% is above its two-year trend
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 36.9% annually
AMD is trading at $132.53 per share, or 28.3x forward P/E. Is now the right time to buy? See for yourself 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 6 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-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
