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.
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 is one company with a net cash position that can leverage its balance sheet to grow and two with hidden risks.
Two Stocks to Sell:
Ibotta (IBTA)
Net Cash Position: $225.1 million (28.9% of Market Cap)
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Why Are We Hesitant About IBTA?
- Revenue base of $367.6 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Projected sales decline of 10.1% for the next 12 months points to a tough demand environment ahead
Ibotta’s stock price of $27.57 implies a valuation ratio of 7.1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than IBTA.
Texas Capital Bank (TCBI)
Net Cash Position: $637.4 million (16.6% of Market Cap)
Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares (NASDAQ:TCBI) is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond.
Why Does TCBI Give Us Pause?
- Net interest income trends were unexciting over the last five years as its 2.2% annual growth was below the typical banking firm
- Weak unit economics are reflected in its net interest margin of 3.1%, one of the worst among bank companies
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 11.1% annually
At $83.25 per share, Texas Capital Bank trades at 1.1x forward P/B. To fully understand why you should be careful with TCBI, check out our full research report (it’s free).
One Stock to Watch:
AMD (AMD)
Net Cash Position: $681 million (0.3% of Market Cap)
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Do We Like AMD?
- Annual revenue growth of 16.3% over the past two years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 22.7% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 32% annually
AMD is trading at $166.66 per share, or 32.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 6 Stocks for this week. 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.