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 that may struggle.
Two Stocks to Sell:
Skyworks Solutions (SWKS)
Net Cash Position: $72.8 million (0.8% of Market Cap)
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Why Do We Steer Clear of SWKS?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6.6% annually over the last two years
- Projected sales decline of 7.9% over the next 12 months indicates demand will continue deteriorating
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 18.7 percentage points
Skyworks Solutions is trading at $63.75 per share, or 13.7x forward P/E. Dive into our free research report to see why there are better opportunities than SWKS.
Gibraltar (ROCK)
Net Cash Position: $58.05 million (4.9% of Market Cap)
Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.
Why Should You Dump ROCK?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.2% annually over the last two years
- Gross margin of 25.6% reflects its high production costs
- Earnings per share have dipped by 1.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $39.61 per share, Gibraltar trades at 10.5x forward P/E. If you’re considering ROCK for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
ServisFirst Bancshares (SFBS)
Net Cash Position: $254.9 million (5.9% of Market Cap)
Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares (NYSE: SFBS) is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank.
Why Could SFBS Be a Winner?
- Impressive 17.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Net interest margin expanded by 53.2 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments
- Impressive 13.1% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
ServisFirst Bancshares’s stock price of $79.21 implies a valuation ratio of 2.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meeting near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
