A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
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 are two companies with net cash positions that can continue growing sustainably and one that may struggle.
One Stock to Sell:
DigitalBridge (DBRG)
Net Cash Position: $30.47 million (1.1% of Market Cap)
Transforming from a traditional real estate investor to a digital-focused powerhouse in 2021, DigitalBridge Group (NYSE: DBRG) is a global digital infrastructure investment firm that manages capital and operates assets across data centers, cell towers, fiber networks, and edge infrastructure.
Why Are We Hesitant About DBRG?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 37.5% annually over the last five years
- ROE of 1.4% reflects management’s challenges in identifying attractive investment opportunities
- Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly
At $15.34 per share, DigitalBridge trades at 2.3x forward P/E. Dive into our free research report to see why there are better opportunities than DBRG.
Two Stocks to Watch:
Atlassian (TEAM)
Net Cash Position: $1.55 billion (5% of Market Cap)
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Does TEAM Stand Out?
- Annual revenue growth of 21.4% over the past two years was outstanding, reflecting market share gains
- Prominent and differentiated software culminates in a premier gross margin of 83.5%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Atlassian is trading at $118.80 per share, or 4.7x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Fluence Energy (FLNC)
Net Cash Position: $313.5 million (8.8% of Market Cap)
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Why Do We Love FLNC?
- Average backlog growth of 21.5% over the past two years shows it has a steady sales pipeline that will drive future orders
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.4% outpaced its revenue gains
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
Fluence Energy’s stock price of $27.29 implies a valuation ratio of 91.4x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
