1 Cash-Heavy Stock with Solid Fundamentals and 2 We Question
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.
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 is one company with a net cash position that can continue growing sustainably and two with hidden risks.
Two Stocks to Sell:
Columbia Sportswear (COLM)
Net Cash Position: $163.4 million (5.6% of Market Cap)
Originally founded as a hat store in 1938, Columbia Sportswear (NASDAQ:COLM) is a manufacturer of outerwear, sportswear, and footwear designed for outdoor enthusiasts.
Why Should You Sell COLM?
- Annual revenue growth of 3.9% over the last five years was below our standards for the consumer discretionary sector
- Low free cash flow margin of 8.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Columbia Sportswear is trading at $57.47 per share, or 15.1x forward P/E. If you’re considering COLM for your portfolio, see our FREE research report to learn more.
Cohen & Steers (CNS)
Net Cash Position: $59.15 million (1.6% of Market Cap)
Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE:CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors.
Why Does CNS Give Us Pause?
- Annual revenue growth of 3.2% over the last five years was below our standards for the financials sector
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
Cohen & Steers’s stock price of $73.09 implies a valuation ratio of 19.8x forward P/E. To fully understand why you should be careful with CNS, check out our full research report (it’s free).
One Stock to Watch:
ePlus (PLUS)
Net Cash Position: $336.3 million (14.5% of Market Cap)
Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ:PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.
Why Do We Like PLUS?
- Annual revenue growth of 8.5% over the last five years beat the sector average and underscores the unique value of its offerings
- Free cash flow margin jumped by 6.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $90.17 per share, ePlus trades at 16.3x forward P/E. Is now the time to initiate a position? 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.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.