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 are two companies with net cash positions that can leverage their balance sheets to grow and one with hidden risks.
One Stock to Sell:
Bark (BARK)
Net Cash Position: $51.42 million (29.8% of Market Cap)
Making a name for itself with the BarkBox, Bark (NYSE: BARK) specializes in subscription-based, personalized pet products.
Why Are We Out on BARK?
- Sales tumbled by 4.9% annually over the last two years, showing consumer trends are working against its favor
- Poor expense management has led to operating margin losses
- Cash-burning history makes us doubt the long-term viability of its business model
Bark’s stock price of $1.02 implies a valuation ratio of 51x forward P/E. Read our free research report to see why you should think twice about including BARK in your portfolio.
Two Stocks to Buy:
Nicolet Bankshares (NIC)
Net Cash Position: $288.3 million (14.5% of Market Cap)
Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE: NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.
Why Is NIC a Top Pick?
- Impressive 18.4% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Net interest margin jumped by 40.3 basis points (100 basis points = 1 percentage point) over the last two years, giving the company more resources to pursue growth initiatives
- Earnings per share grew by 14.9% annually over the last two years, massively outpacing its peers
Nicolet Bankshares is trading at $133.57 per share, or 1.6x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Amalgamated Financial (AMAL)
Net Cash Position: $80.21 million (8.8% of Market Cap)
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Why Will AMAL Beat the Market?
- Solid 10% annual net interest income growth over the last five years indicates its offerings are gaining share
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 8% annually, topping its revenue gains
- Impressive 20.4% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
At $30.06 per share, Amalgamated Financial trades at 1.1x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.
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