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 is one company with a net cash position that balances growth with stability and two with hidden risks.
Two Stocks to Sell:
Triumph Financial (TFIN)
Net Cash Position: $739.9 million (50.3% of Market Cap)
Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NYSE: TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions.
Why Do We Pass on TFIN?
- Annual net interest income growth of 1.8% over the last five years was below our standards for the banking sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 22.2% annually while its revenue grew
- Insufficient tier one capital ratio of 9.9% leaves little margin for error in meeting regulatory liquidity requirements
Triumph Financial’s stock price of $61.62 implies a valuation ratio of 1.6x forward P/B. If you’re considering TFIN for your portfolio, see our FREE research report to learn more.
Dolby Laboratories (DLB)
Net Cash Position: $692.1 million (12.4% of Market Cap)
Known for its iconic "D" logo that appears before countless movies and TV shows, Dolby Laboratories (NYSE: DLB) designs and licenses audio and video technologies that enhance entertainment experiences in movies, TV shows, music, and other media.
Why Is DLB Risky?
- Annual revenue growth of 1.3% over the last five years was well below our standards for the software sector
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3.3 percentage points
At $58.12 per share, Dolby Laboratories trades at 3.8x forward price-to-sales. Check out our free in-depth research report to learn more about why DLB doesn’t pass our bar.
One Stock to Buy:
NetApp (NTAP)
Net Cash Position: $1.09 billion (2.5% of Market Cap)
Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.
Why Should You Buy NTAP?
- Business is winning new contracts that can potentially increase in value as its billings growth averaged 10.4% over the past two years
- Share buybacks catapulted its annual earnings per share growth to 15.5%, which outperformed its revenue gains over the last five years
- Strong free cash flow margin of 20.6% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
NetApp is trading at $226.88 per share, or 22.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
