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.

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. That said, here is one company with a net cash position that can continue growing sustainably and two with hidden risks.

Two Stocks to Sell:

Movado (MOV)

Net Cash Position: $102 million (21.1% of Market Cap)

With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.

Why Do We Pass on MOV?

1. Sales trends were unexciting over the last five years as its 4.7% annual growth was below the typical consumer discretionary company
2. Poor free cash flow margin of 4.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Movado is trading at $21.83 per share, or 13.2x forward P/E. Dive into our free research report to see why there are better opportunities than MOV.

Expeditors (EXPD)

Net Cash Position: $629.8 million (3% of Market Cap)

Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.

Why Are We Cautious About EXPD?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.3% over the last two years was below our standards for the industrials sector
2. High input costs result in an inferior gross margin of 13.4% that must be offset through higher volumes
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Expeditors’s stock price of $156.93 implies a valuation ratio of 26.7x forward P/E. If you’re considering EXPD for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

WEBTOON (WBTN)

Net Cash Position: $558.3 million (31% of Market Cap)

Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ: WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.

Why Will WBTN Beat the Market?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 7.2% annual sales growth over the last two years
2. Adjusted operating margin expansion of 11 percentage points over the last four years shows the company optimized its expenses
3. Additional sales over the last two years increased its profitability as the 75.9% annual growth in its earnings per share outpaced its revenue

At $13.79 per share, WEBTOON trades at 63.3x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.