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.
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 balance growth with stability and one best left off your watchlist.
One Stock to Sell:
SmartRent (SMRT)
Net Cash Position: $98.82 million (44.6% of Market Cap)
Founded by an employee at a real estate rental company, SmartRent (NYSE: SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Does SMRT Give Us Pause?
- Sales tumbled by 17.9% annually over the last two years, showing market trends are working against it during this cycle
- Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $1.17 per share, SmartRent trades at 1.2x forward price-to-sales. Check out our free in-depth research report to learn more about why SMRT doesn’t pass our bar.
Two Stocks to Watch:
AMD (AMD)
Net Cash Position: $9.12 billion (1.1% of Market Cap)
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Could AMD Be a Winner?
- Market share has increased this cycle as its 26.8% annual revenue growth over the last five years was exceptional
- Projected revenue growth of 47.6% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share grew by 23% annually over the last five years and easily exceeded the peer group average
AMD is trading at $491.75 per share, or 51.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Accenture (ACN)
Net Cash Position: $1.06 billion (1% of Market Cap)
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Are We Bullish on ACN?
- Market share has increased this cycle as its 9.6% annual revenue growth over the last five years was exceptional
- Dominant market position is represented by its $72.11 billion in revenue and gives it fixed cost leverage when sales grow
- Free cash flow margin grew by 5.4 percentage points over the last five years, giving the company more chips to play with
Accenture’s stock price of $168.85 implies a valuation ratio of 12x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
