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. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one that may struggle.
One Stock to Sell:
EverQuote (EVER)
Net Cash Position: $168.8 million (29% of Market Cap)
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Is EVER Not Exciting?
- Expensive marketing campaigns hurt its profitability and make us wonder what would happen if it let up on the gas
At $16.40 per share, EverQuote trades at 3.6x forward EV/EBITDA. Check out our free in-depth research report to learn more about why EVER doesn’t pass our bar.
Two Stocks to Buy:
Nextpower (NXT)
Net Cash Position: $952.6 million (6% 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 Do We Love NXT?
- Impressive 25.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin jumped by 22.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Rising returns on capital show management is finding more attractive investment opportunities
Nextpower’s stock price of $107.53 implies a valuation ratio of 24.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Houlihan Lokey (HLI)
Net Cash Position: $62.22 million (0.6% of Market Cap)
Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE: HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.
Why Is HLI a Top Pick?
- Annual revenue growth of 20% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 34.9% over the last two years outstripped its revenue performance
- Balance sheet strength has increased this cycle as its 34.3% annual tangible book value per share growth over the last two years was exceptional
Houlihan Lokey is trading at $158.74 per share, or 20.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
