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. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one with hidden risks.
One Stock to Sell:
Exponent (EXPO)
Net Cash Position: $151.5 million (4.1% of Market Cap)
With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ: EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.
Why Are We Hesitant About EXPO?
- Muted 3.3% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
- Diminishing returns on capital suggest its earlier profit pools are drying up
Exponent is trading at $73.05 per share, or 34.8x forward P/E. If you’re considering EXPO for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Bill.com (BILL)
Net Cash Position: $399.2 million (9.6% of Market Cap)
Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, Bill.com (NYSE: BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses.
Why Are We Positive On BILL?
- Billings have averaged 15.3% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Prominent and differentiated software results in a stellar gross margin of 84.5%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Bill.com’s stock price of $40.50 implies a valuation ratio of 2.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Trupanion (TRUP)
Net Cash Position: $9.63 million (0.4% of Market Cap)
Born from a vision to help pet owners avoid economic euthanasia when faced with expensive veterinary bills, Trupanion (NASDAQ: TRUP) provides medical insurance for cats and dogs through data-driven, vertically-integrated products priced specifically for each pet's unique characteristics.
Why Is TRUP on Our Radar?
- Annual revenue growth of 16.2% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 143% annual growth in its earnings per share outpaced its revenue
- Annual book value per share growth of 15.5% over the past five years was outstanding, reflecting strong capital accumulation this cycle
At $50.42 per share, Trupanion trades at 6.3x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Exlservice (+354% 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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