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 are two companies with net cash positions that can continue growing sustainably and one with hidden risks.
One Stock to Sell:
FB Financial (FBK)
Net Cash Position: $701.8 million (26.5% of Market Cap)
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
Why Are We Cautious About FBK?
- Sales trends were unexciting over the last five years as its 2.6% annual growth was below the typical banking company
- Estimated net interest income growth of 5.2% for the next 12 months implies demand will slow from its five-year trend
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
FB Financial’s stock price of $53.00 implies a valuation ratio of 1.3x forward P/B. Check out our free in-depth research report to learn more about why FBK doesn’t pass our bar.
Two Stocks to Watch:
Lam Research (LRCX)
Net Cash Position: $1.84 billion (0.5% of Market Cap)
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ: LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Will LRCX Beat the Market?
- Annual revenue growth of 24.8% over the last two years was superb and indicates its market share increased during this cycle
- Highly efficient business model is illustrated by its impressive 33.8% operating margin, and it turbocharged its profits by achieving some fixed cost leverage
- ROIC punches in at 64.2%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets
Lam Research is trading at $320.00 per share, or 34.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stock Yards Bank (SYBT)
Net Cash Position: $371.2 million (15.7% of Market Cap)
Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ: SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.
Why Does SYBT Stand Out?
- Impressive 16.6% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Net interest margin increased by 41.7 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
- Annual tangible book value per share growth of 10.4% over the past five years was outstanding, reflecting strong capital accumulation this cycle
At $75.90 per share, Stock Yards Bank trades at 1.8x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
