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. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one best left off your watchlist.
One Stock to Sell:
Korn Ferry (KFY)
Net Cash Position: $607 million (15.5% of Market Cap)
With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE: KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies.
Why Do We Pass on KFY?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.8% annually over the last two years
- Flat earnings per share over the last two years underperformed the sector average
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Korn Ferry’s stock price of $74.87 implies a valuation ratio of 14.9x forward P/E. If you’re considering KFY for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Vita Coco (COCO)
Net Cash Position: $167 million (8.3% of Market Cap)
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
Why Is COCO Interesting?
- Average unit sales growth of 7.8% over the past two years reflects steady demand for its products
- Earnings growth has trumped its peers over the last three years as its EPS has compounded at 195% annually
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities
Vita Coco is trading at $34.54 per share, or 27.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Wintrust Financial (WTFC)
Net Cash Position: $936.4 million (10.1% of Market Cap)
Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.
Why Are We Fans of WTFC?
- Impressive 15.4% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Earnings per share grew by 5% annually over the last two years, massively outpacing its peers
- Annual tangible book value per share growth of 10.3% over the last five years was superb and indicates its capital strength increased during this cycle
At $138.16 per share, Wintrust Financial trades at 1.4x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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