Companies with more cash than debt often have stronger financial flexibility, making them attractive in uncertain markets. Without interest payments being less of a worry, these businesses can invest more in growth, innovation, or buybacks and dividends.
Even among the companies with sound capital structures, only a few stand out, and we’re here to help you identify them. Keeping that in mind, here are three companies with net cash positions that can leverage their balance sheets to grow.
AvidXchange (AVDX)
Net Cash Position: $739.7 million (35.6% of Market Cap)
Born from the frustration of paper-based accounting processes in the early 2000s, AvidXchange (NASDAQ: AVDX) provides accounts payable automation software and payment solutions that help middle-market businesses digitize and streamline their invoice processing and payments.
Why Does AVDX Stand Out?
- Annual revenue growth of 22% over the last five years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 69.6% over the last two years outstripped its revenue performance
AvidXchange is trading at $9.99 per share, or 4.5x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Fidelis Insurance (FIHL)
Net Cash Position: $260.9 million (13.7% of Market Cap)
Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Fidelis Insurance (NYSE: FIHL) is a global specialty insurer and reinsurer that provides customized coverage across property, specialty, and bespoke risk solutions.
Why Could FIHL Be a Winner?
- Net premiums earned surged by 20.6% annually over the past two years, reflecting strong market share gains this cycle
- Projected revenue growth of 9.8% for the next 12 months suggests its momentum from the last two years will persist
- Capital strength is on track to rise over the next 12 months as its 30.5% projected book value per share growth implies profitability will accelerate from its two-year trend
Fidelis Insurance’s stock price of $18.21 implies a valuation ratio of 0.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Nubank (NU)
Net Cash Position: $9.80 billion (12.8% of Market Cap)
With nearly 94 million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE: NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
Why Should You Buy NU?
- Market share has increased this cycle as its 44.9% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 99.9% annually, topping its revenue gains
At $15.87 per share, Nubank trades at 21x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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