A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.

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 can continue growing sustainably and one with hidden risks.

One Stock to Sell:

Privia Health (PRVA)

Net Cash Position: $463.9 million (17.9% of Market Cap)

Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.

Why Are We Hesitant About PRVA?

1. Modest revenue base of $1.80 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.6% for the last five years
3. Negative returns on capital show management lost money while trying to expand the business

At $21 per share, Privia Health trades at 24.8x forward P/E. To fully understand why you should be careful with PRVA, check out our full research report (it’s free).

Two Stocks to Watch:

Cal-Maine (CALM)

Net Cash Position: $964.2 million (19.3% of Market Cap)

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.

Why Are We Fans of CALM?

1. Annual revenue growth of 35.3% over the last three years was superb and indicates its market share is rising
2. Additional sales over the last three years increased its profitability as the 280% annual growth in its earnings per share outpaced its revenue
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute

Cal-Maine is trading at $101.65 per share, or 9.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Ameris Bancorp (ABCB)

Net Cash Position: $873.5 million (18.9% of Market Cap)

Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE: ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.

Why Do We Like ABCB?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 8.4% annual sales growth over the last five years
2. Additional sales over the last two years increased its profitability as the 7.2% annual growth in its earnings per share outpaced its revenue
3. Annual tangible book value per share growth of 14.3% over the last five years was superb and indicates its capital strength increased during this cycle

Ameris Bancorp’s stock price of $67.27 implies a valuation ratio of 1.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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-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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