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.
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. That said, here are two companies with net cash positions that can continue growing sustainably and one with hidden risks.
One Stock to Sell:
C3.ai (AI)
Net Cash Position: $575.4 million (37.4% of Market Cap)
Named after the three Cs of its original focus—carbon, cloud computing, and customer relationship management—C3.ai (NYSE: AI) provides enterprise AI software that helps organizations develop, deploy, and operate large-scale artificial intelligence applications across various industries.
Why Do We Think AI Will Underperform?
- Customers had second thoughts about committing to its platform over the last year as its billings averaged 33.8% declines
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Negative free cash flow raises questions about the return timeline for its investments
C3.ai’s stock price of $10.60 implies a valuation ratio of 6.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than AI.
Two Stocks to Watch:
MACOM (MTSI)
Net Cash Position: $324 million (1.2% of Market Cap)
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Does MTSI Stand Out?
- Annual revenue growth of 29.8% over the last two years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 36.5% for the next 12 months indicates demand will rise above its two-year trend
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 18.4% annually
At $362.44 per share, MACOM trades at 55.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Tutor Perini (TPC)
Net Cash Position: $671.5 million (17.7% of Market Cap)
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Are We Positive on TPC?
- Impressive 17% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 102% annually over the last two years, massively outpacing its peers
- Free cash flow margin increased by 12.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Tutor Perini is trading at $72.18 per share, or 13x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
