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.
Just because a business has cash doesn’t mean it’s a good investment. Luckily, StockStory is here to help you separate the winners from the losers. 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:
FirstSun Capital Bancorp (FSUN)
Net Cash Position: $573.9 million (52% of Market Cap)
Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.
Why Are We Hesitant About FSUN?
- Annual revenue growth of 3.7% over the last two years was below our standards for the banking sector
- Net interest margin shrank by 23.3 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
- Tangible book value per share is projected to decrease by 4% over the next 12 months as capital generation weakens
FirstSun Capital Bancorp is trading at $39.58 per share, or 0.9x forward P/B. To fully understand why you should be careful with FSUN, check out our full research report (it’s free).
Two Stocks to Buy:
Snowflake (SNOW)
Net Cash Position: $667.5 million (0.9% of Market Cap)
Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE: SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.
Why Will SNOW Outperform?
- Billings have averaged 30.5% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Market share will likely rise over the next 12 months as its expected revenue growth of 25.1% is robust
- Free cash flow margin is forecasted to grow by 8.1 percentage points in the coming year, potentially giving the company more chips to play with
At $224.11 per share, Snowflake trades at 14.5x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
EMCOR (EME)
Net Cash Position: $230.5 million (0.8% of Market Cap)
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Will EME Beat the Market?
- Annual revenue growth of 15.9% over the past two years was outstanding, reflecting market share gains this cycle
- Share buybacks catapulted its annual earnings per share growth to 47.4%, which outperformed its revenue gains over the last two years
- Improving returns on capital reflect management’s ability to monetize investments
EMCOR’s stock price of $626.51 implies a valuation ratio of 24.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
