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. Keeping that in mind, here are three companies with net cash positions that don’t make the cut and some better choices instead.
YETI (YETI)
Net Cash Position: $75.93 million (3% of Market Cap)
Founded by two brothers from Texas, YETI (NYSE: YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
Why Does YETI Give Us Pause?
- Lackluster 7.1% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Estimated sales growth of 3.2% for the next 12 months implies demand will slow from its two-year trend
- Waning returns on capital imply its previous profit engines are losing steam
At $30.60 per share, YETI trades at 11.4x forward P/E. Read our free research report to see why you should think twice about including YETI in your portfolio.
Omnicell (OMCL)
Net Cash Position: $45.56 million (3.4% of Market Cap)
Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ: OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.
Why Should You Sell OMCL?
- Sales tumbled by 5.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Subscale operations are evident in its revenue base of $1.14 billion, meaning it has fewer distribution channels than its larger rivals
- Earnings per share fell by 7.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Omnicell is trading at $28.01 per share, or 15.4x forward P/E. If you’re considering OMCL for your portfolio, see our FREE research report to learn more.
First Busey (BUSE)
Net Cash Position: $470.4 million (22.9% of Market Cap)
Tracing its roots back to 1868 during America's post-Civil War reconstruction era, First Busey (NASDAQ: BUSE) is a bank holding company that provides commercial and retail banking, wealth management, and payment technology solutions across Illinois, Missouri, Florida, and Indiana.
Why Do We Think Twice About BUSE?
- Muted 5.9% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
- Net interest margin of 2.9% reflects its high servicing and capital costs
- Operational productivity has decreased over the last four years as its efficiency ratio worsened by 9.1 percentage points
First Busey’s stock price of $23 implies a valuation ratio of 0.9x forward P/B. To fully understand why you should be careful with BUSE, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 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
