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.
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 are two companies with net cash positions that can continue growing sustainably and one with hidden risks.
One Stock to Sell:
Enphase (ENPH)
Net Cash Position: $327.5 million (7.1% of Market Cap)
The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ:ENPH) manufactures software-driven home energy products.
Why Does ENPH Worry Us?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 12 percentage points
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Enphase’s stock price of $35.50 implies a valuation ratio of 14.2x forward P/E. Dive into our free research report to see why there are better opportunities than ENPH.
Two Stocks to Buy:
DoorDash (DASH)
Net Cash Position: $5.29 billion (5% of Market Cap)
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE:DASH) operates an on-demand food delivery platform.
Why Will DASH Beat the Market?
- Orders have grown by 21% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 105% outpaced its revenue gains
- Free cash flow margin expanded by 11.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
DoorDash is trading at $250.47 per share, or 37.5x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Copart (CPRT)
Net Cash Position: $4.28 billion (9.5% of Market Cap)
Starting as a single salvage yard in California in 1982, Copart (NASDAQ:CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Why Are We Backing CPRT?
- Annual revenue growth of 15.6% over the past five years was outstanding, reflecting market share gains this cycle
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 19.6% outpaced its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
At $46.69 per share, Copart trades at 27.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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.
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