1 Cash-Heavy Stock to Research Further 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.
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. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two with hidden risks.
Two Stocks to Sell:
Byrna (BYRN)
Net Cash Position: $8.18 million (7.7% of Market Cap)
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
Why Are We Wary of BYRN?
- Poor expense management has led to operating margin losses
- Earnings per share fell by 25.2% annually over the last five years while its revenue grew, partly because it diluted shareholders
- Cash-burning history makes us doubt the long-term viability of its business model
At $4.48 per share, Byrna trades at 1.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BYRN.
First American Financial (FAF)
Net Cash Position: $41.8 million (0.7% of Market Cap)
Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE:FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.
Why Does FAF Give Us Pause?
- Net premiums earned contracted by 1.9% annually over the last five years, showing unfavorable market dynamics this cycle
- Flat earnings per share over the last five years underperformed the sector average
- Annual book value per share growth of 2.8% over the last five years was below our standards for the insurance sector
First American Financial’s stock price of $62.16 implies a valuation ratio of 1.1x forward P/B. To fully understand why you should be careful with FAF, check out our full research report (it’s free).
One Stock to Watch:
Blink Charging (BLNK)
Net Cash Position: $30.84 million (45.7% of Market Cap)
One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Does BLNK Stand Out?
- Gross margin of 32.5% provides the financial cushion needed to invest in marketing and develop new products
- Earnings per share have massively outperformed its peers over the last two years, increasing by 35.7% annually
Blink Charging is trading at $0.47 per share, or 0.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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.