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. That said, here are two companies with net cash positions that can leverage their balance sheets to grow and one that may struggle.
One Stock to Sell:
The Marzetti Company (MZTI)
Net Cash Position: $162.8 million (4.2% of Market Cap)
Known for its frozen garlic bread and Parkerhouse rolls, The Marzetti Company (NASDAQ: MZTI) sells bread, dressing, and dips to the retail and food service channels.
Why Does MZTI Fall Short?
- Annual revenue growth of 3% over the last three years was below our standards for the consumer staples sector
- Estimated sales growth of 1.5% for the next 12 months is soft and implies weaker demand
- Gross margin of 23.4% is below its competitors, leaving less money to invest in areas like marketing and production facilities
The Marzetti Company is trading at $140.38 per share, or 19.5x forward P/E. Dive into our free research report to see why there are better opportunities than MZTI.
Two Stocks to Watch:
Microsoft (MSFT)
Net Cash Position: $31.86 billion (1.2% of Market Cap)
Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ: MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.
Why Are We Backing MSFT?
- Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins.
- The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft.
- Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat.
Microsoft’s stock price of $366.82 implies a valuation ratio of 21.1x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Intuitive Surgical (ISRG)
Net Cash Position: $5.90 billion (3.5% of Market Cap)
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Do We Watch ISRG?
- Annual revenue growth of 18.9% over the past two years was outstanding, reflecting market share gains this cycle
- Estimated revenue growth of 14.1% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share grew by 21.4% annually over the last five years, massively outpacing its peers
At $471.01 per share, Intuitive Surgical trades at 46.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.
