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 with hidden risks.
Two Stocks to Sell:
Snap-on (SNA)
Net Cash Position: $187.2 million (1.1% of Market Cap)
Founded in 1920, Snap-on (NYSE: SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Why Do We Steer Clear of SNA?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- 4.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Waning returns on capital imply its previous profit engines are losing steam
Snap-on is trading at $336.84 per share, or 17.3x forward P/E. If you’re considering SNA for your portfolio, see our FREE research report to learn more.
Triumph Financial (TFIN)
Net Cash Position: $40.96 million (3.6% of Market Cap)
Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NASDAQ: TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions.
Why Are We Cautious About TFIN?
- Annual net interest income growth of 6.4% over the last five years was below our standards for the banking sector
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 121 basis points (100 basis points = 1 percentage point)
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 19.3% annually
Triumph Financial’s stock price of $48.28 implies a valuation ratio of 1.3x forward P/B. Read our free research report to see why you should think twice about including TFIN in your portfolio.
One Stock to Watch:
Olo (OLO)
Net Cash Position: $364.7 million (21% of Market Cap)
Processing over two million orders daily across 80,000 restaurant locations nationwide, Olo (NYSE: OLO) provides an enterprise-grade SaaS platform that powers digital ordering, delivery, and payment systems for restaurant brands across the United States.
Why Do We Like OLO?
- Annual revenue growth of 24% over the last two years was superb and indicates its market share is rising
- Billings have averaged 23.4% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $10.26 per share, Olo trades at 5.9x trailing 12-month price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
