A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two that may struggle.
Two Stocks to Sell:
Fiverr (FVRR)
Net Cash Position: $399.5 million (42.9% of Market Cap)
Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.
Why Are We Wary of FVRR?
- Value proposition isn’t resonating strongly as its active buyers averaged 8.1% drops over the last two years
- Estimated sales growth of 6.4% for the next 12 months implies demand will slow from its three-year trend
- Excessive marketing spend signals little organic demand and traction for its platform
Fiverr is trading at $25.22 per share, or 10.3x forward EV/EBITDA. Read our free research report to see why you should think twice about including FVRR in your portfolio.
Expeditors (EXPD)
Net Cash Position: $569.6 million (3.4% of Market Cap)
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Why Should You Dump EXPD?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.5% annually over the last two years
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Expeditors’s stock price of $124.05 implies a valuation ratio of 23.5x forward P/E. Check out our free in-depth research report to learn more about why EXPD doesn’t pass our bar.
One Stock to Buy:
Paymentus (PAY)
Net Cash Position: $258.4 million (6% of Market Cap)
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
Why Will PAY Outperform?
- Market share has increased this cycle as its 36.9% annual revenue growth over the last two years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 134% outpaced its revenue gains
At $34.56 per share, Paymentus trades at 55.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
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 9 Market-Beating Stocks. 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-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
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