A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
Just because a business has cash doesn’t mean it’s a good investment. Luckily, StockStory is here to help you separate the winners from the losers. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two with hidden risks.
Two Stocks to Sell:
LiveRamp (RAMP)
Net Cash Position: $376.9 million (20.5% of Market Cap)
Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE:RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.
Why Does RAMP Fall Short?
- Customers were hesitant to make long-term commitments to its software as its 7.4% average ARR growth over the last year was sluggish
- Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend
- Operating margin expanded by 3.6 percentage points over the last year as it scaled and became more efficient
LiveRamp’s stock price of $28.85 implies a valuation ratio of 2.2x forward price-to-sales. Check out our free in-depth research report to learn more about why RAMP doesn’t pass our bar.
Stitch Fix (SFIX)
Net Cash Position: $141.3 million (25.2% of Market Cap)
One of the original subscription box companies, Stitch Fix (NASDAQ:SFIX) is an online personal styling and fashion service that curates personalized clothing selections for customers.
Why Are We Out on SFIX?
- Number of active clients has disappointed over the past two years, indicating weak demand for its offerings
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $4.26 per share, Stitch Fix trades at 15.1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SFIX.
One Stock to Watch:
Barrett (BBSI)
Net Cash Position: $84.58 million (9.4% of Market Cap)
Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ:BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.
Why Could BBSI Be a Winner?
- Solid 7.2% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Share repurchases over the last five years enabled its annual earnings per share growth of 10.9% to outpace its revenue gains
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Barrett is trading at $35.11 per share, or 15.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 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.