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.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here are two companies with net cash positions that balance growth with stability and one best left off your watchlist.
One stock to sell:
First Financial Bankshares (FFIN)
Net Cash Position: $409.5 million (9.7% of Market Cap)
With roots dating back to 1890 and a network spanning over 70 locations across the Lone Star State, First Financial Bankshares (NASDAQ: FFIN) is a Texas-focused regional bank providing commercial banking, trust services, and wealth management across numerous communities throughout the state.
Why Does FFIN Give Us Pause?
- Annual net interest income growth of 8.1% over the last five years was below our standards for the banking sector
- Incremental sales over the last five years were less profitable as its 4.7% annual earnings per share growth lagged its revenue gains
- Capital trends were unexciting over the last five years as its 1.1% annual tangible book value per share growth was below the typical banking firm
At $30.34 per share, First Financial Bankshares trades at 2.3x forward P/B. To fully understand why you should be careful with FFIN, check out our full research report (it’s free).
Two stocks to watch:
Flywire (FLYW)
Net Cash Position: $294.2 million (12.6% of Market Cap)
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Why Are We Positive on FLYW?
- Average billings growth of 33.9% over the last year enhances its liquidity and shows there is steady demand for its products
- Forecasted revenue growth of 16.9% for the next 12 months indicates its momentum over the last two years is sustainable
- Free cash flow margin of 21.3% is higher than many in the industry, giving it breathing room and optionality
Flywire’s stock price of $19.20 implies a valuation ratio of 2.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
UMB Financial (UMBF)
Net Cash Position: $2.95 billion (29.2% of Market Cap)
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ: UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
Why Could UMBF Be a Winner?
- Annual revenue growth of 38.1% over the past two years was outstanding, reflecting market share gains this cycle
- Annual net interest income growth of 21.7% over the past five years was outstanding, reflecting market share gains this cycle
- Net interest margin increased by 78.4 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
UMB Financial is trading at $135.52 per share, or 1.2x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
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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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
