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.
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. That said, here are two companies with net cash positions that balance growth with stability and one best left off your watchlist.
One Stock to Sell:
Cincinnati Financial (CINF)
Net Cash Position: $857 million (3.2% of Market Cap)
Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ: CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.
Why Are We Wary of CINF?
- Day-to-day expenses have swelled relative to revenue over the last five years as its pre-tax profit margin fell by 16.2 percentage points
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 18.4% annually
- Estimated book value per share growth of 4.7% for the next 12 months implies profitability will slow from its two-year trend
Cincinnati Financial is trading at $171.41 per share, or 1.5x forward P/B. Read our free research report to see why you should think twice about including CINF in your portfolio.
Two Stocks to Buy:
Remitly (RELY)
Net Cash Position: $638.1 million (13.5% of Market Cap)
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Do We Love RELY?
- Active Customers have grown by 25.8% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 163% outpaced its revenue gains
- Free cash flow margin increased by 43.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $22.60 per share, Remitly trades at 9.3x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Blue Bird (BLBD)
Net Cash Position: $30.01 million (1.5% of Market Cap)
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Why Are We Bullish on BLBD?
- Average unit sales growth of 9.2% over the past two years reflects steady demand for its products
- Free cash flow margin expanded by 23.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are climbing as management makes more lucrative bets
Blue Bird’s stock price of $62.67 implies a valuation ratio of 12.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
