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. That said, here is one company with a net cash position that balances growth with stability and two that may struggle.
Two Stocks to Sell:
S&T Bancorp (STBA)
Net Cash Position: $103.7 million (6.5% of Market Cap)
Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ: STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.
Why Does STBA Worry Us?
- 4.9% annual net interest income growth over the last five years was slower than its banking peers
- Anticipated net interest income growth of 3.8% for the next year implies demand will be shaky
- Earnings per share were flat over the last two years and fell short of the peer group average
S&T Bancorp’s stock price of $44.04 implies a valuation ratio of 1.1x forward P/B. To fully understand why you should be careful with STBA, check out our full research report (it’s free).
Columbia Banking System (COLB)
Net Cash Position: $1.33 billion (15.7% of Market Cap)
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ: COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Why Does COLB Give Us Pause?
- 9.6% annual revenue growth over the last two years was slower than its banking peers
- Earnings per share fell by 2.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Annual tangible book value per share declines of 1.3% for the past five years show its capital management struggled during this cycle
At $29.10 per share, Columbia Banking System trades at 1.1x forward P/B. If you’re considering COLB for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Braze (BRZE)
Net Cash Position: $329.8 million (15.1% of Market Cap)
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ: BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Why Are We Positive On BRZE?
- Average billings growth of 28% over the last year enhances its liquidity and shows there is steady demand for its products
- Forecasted revenue growth of 20.3% for the next 12 months indicates its momentum over the last two years is sustainable
Braze is trading at $19.41 per share, or 2.5x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
