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.
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 best left off your watchlist.
One Stock to Sell:
Texas Capital Bank (TCBI)
Net Cash Position: $2.60 billion (61.2% of Market Cap)
Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares (NASDAQ: TCBI) is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond.
Why Does TCBI Worry Us?
- Muted 5.7% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Estimated net interest income growth of 1.9% for the next 12 months implies demand will slow from its five-year trend
- Underwhelming 7.3% return on equity reflects management’s difficulties in finding profitable growth opportunities
Texas Capital Bank’s stock price of $98.23 implies a valuation ratio of 1.2x forward P/B. Read our free research report to see why you should think twice about including TCBI in your portfolio.
Two Stocks to Watch:
SentinelOne (S)
Net Cash Position: $650.1 million (9.6% 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 Do We Like S?
- ARR growth averaged 22.2% over the last year, showing customers are willing to take multi-year bets on its software
- Projected revenue growth of 19.2% for the next 12 months suggests its momentum from the last two years will persist
- Free cash flow margin is anticipated to expand by 9.4 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
At $19.48 per share, SentinelOne trades at 5.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Core Natural Resources (CNR)
Net Cash Position: $25.56 million (0.5% of Market Cap)
Tracing its origins to 1864 and operating some mines southwest of Pittsburgh, Core Natural Resources (NYSE: CNR) mines and exports metallurgical coal used in steelmaking and thermal coal for power generation.
Why Are We Fans of CNR?
- Market share has increased this cycle as its 15.6% annual revenue growth over the last ten years was exceptional
- Revenue base of $4.27 billion gives it economies of scale and some negotiating power with suppliers
- Strong free cash flow margin of 12.6% enables it to reinvest or return capital consistently
Core Natural Resources is trading at $100.01 per share, or 23.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
