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 balance growth with stability and one with hidden risks.
One Stock to Sell:
Procore Technologies (PCOR)
Net Cash Position: $597.1 million (6.6% of Market Cap)
With a mission to build software for the people that build the world, Procore Technologies (NYSE: PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device.
Why Does PCOR Worry Us?
- Estimated sales growth of 13.3% for the next 12 months implies demand will slow from its two-year trend
- Persistent operating margin losses suggest the business manages its expenses poorly
Procore Technologies’s stock price of $60.24 implies a valuation ratio of 5.9x forward price-to-sales. Read our free research report to see why you should think twice about including PCOR in your portfolio.
Two Stocks to Watch:
Inter Parfums (IPAR)
Net Cash Position: $49.28 million (1.3% of Market Cap)
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.
Why Is IPAR on Our Radar?
- Differentiated product offerings are difficult to replicate at scale and lead to a premier gross margin of 59.7%
- Robust free cash flow margin of 15% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Industry-leading 26% return on capital demonstrates management’s skill in finding high-return investments
At $114.39 per share, Inter Parfums trades at 23.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Nextpower (NXT)
Net Cash Position: $1.21 billion (7.9% of Market Cap)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Will NXT Beat the Market?
- Market share has increased this cycle as its 15.1% annual revenue growth over the last two years was exceptional
- Free cash flow margin increased by 23.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are climbing as management makes more lucrative bets
Nextpower is trading at $101.90 per share, or 21.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
