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.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here are three companies with net cash positions to steer clear of and a few alternatives to consider.
Revolve (RVLV)
Net Cash Position: $280.1 million (17.1% of Market Cap)
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ: RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.
Why Do We Avoid RVLV?
- White space opportunities may be dwindling as its growth in active customers averaged a weak 5.7%
- Lackluster growth in its average revenue per buyer coupled with its weaker engagement trends led to sluggish demand over the last two years
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
At $24.30 per share, Revolve trades at 18.7x forward EV/EBITDA. To fully understand why you should be careful with RVLV, check out our full research report (it’s free for active Edge members).
Vishay Precision (VPG)
Net Cash Position: $42.42 million (9.8% of Market Cap)
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.
Why Should You Sell VPG?
- Sales tumbled by 9% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share fell by 15.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Vishay Precision’s stock price of $33.55 implies a valuation ratio of 34.3x forward P/E. If you’re considering VPG for your portfolio, see our FREE research report to learn more.
FuelCell Energy (FCEL)
Net Cash Position: $53.93 million (18.9% of Market Cap)
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Are We Hesitant About FCEL?
- Sales trends were unexciting over the last two years as its 4.3% annual growth was below the typical industrials company
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
FuelCell Energy is trading at $6.02 per share, or 0.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FCEL.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-micro-cap company Tecnoglass (+1,754% 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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