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. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one that may struggle.

One Stock to Sell:

Skyworks Solutions (SWKS)

Net Cash Position: $72.8 million (0.8% of Market Cap)

Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.

Why Are We Out on SWKS?

1. Annual sales declines of 6.6% for the past two years show its products and services struggled to connect with the market during this cycle
2. Forecasted revenue decline of 8.1% for the upcoming 12 months implies demand will fall even further
3. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 18.7 percentage points

Skyworks Solutions’s stock price of $60.59 implies a valuation ratio of 13.8x forward P/E. To fully understand why you should be careful with SWKS, check out our full research report (it’s free).

Two Stocks to Watch:

SentinelOne (S)

Net Cash Position: $632.2 million (13.9% of Market Cap)

Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.

Why Will S Outperform?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 24.6% growth over the last year
2. Forecasted revenue growth of 20.1% for the next 12 months indicates its momentum over the last two years is sustainable
3. Free cash flow margin is forecasted to grow by 3.4 percentage points in the coming year, potentially giving the company more chips to play with

At $13.45 per share, SentinelOne trades at 3.9x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

First BanCorp (FBP)

Net Cash Position: $367.9 million (10.5% of Market Cap)

Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.

Why Could FBP Be a Winner?

1. Differentiated product suite is reflected in its Strong performance of its loan book results in a High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 4.6%
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Annual tangible book value per share growth of 20.1% over the last two years was superb and indicates its capital strength increased during this cycle

First BanCorp is trading at $22.49 per share, or 1.6x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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.