Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
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 are two companies with net cash positions that balance growth with stability and one with hidden risks.
One Stock to Sell:
ACV Auctions (ACVA)
Net Cash Position: $91.52 million (6.7% of Market Cap)
Founded in 2014, ACV Auctions (NASDAQ: ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
Why Are We Cautious About ACVA?
- High servicing costs result in an inferior gross margin of 27.4% that must be offset through higher volumes
- Excessive marketing spend signals little organic demand and traction for its platform
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.1% for the last two years
At $7.90 per share, ACV Auctions trades at 19.9x forward EV/EBITDA. If you’re considering ACVA for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Palantir Technologies (PLTR)
Net Cash Position: $6.20 billion (1.5% of Market Cap)
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Are We Backing PLTR?
- Average billings growth of 52.2% over the last year enhances its liquidity and shows there is steady demand for its products
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Palantir Technologies’s stock price of $175.84 implies a valuation ratio of 75.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Celsius (CELH)
Net Cash Position: $45.99 million (0.4% of Market Cap)
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Why Should CELH Be on Your Watchlist?
- Annual revenue growth of 54.2% over the past three years was outstanding, reflecting market share gains
- Earnings per share grew by 321% annually over the last three years and trumped its peers
- Strong free cash flow margin of 19.8% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
Celsius is trading at $41.96 per share, or 28.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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