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 with hidden risks.
Two Stocks to Sell:
State Street (STT)
Net Cash Position: $94.96 billion (227% of Market Cap)
Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE: STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.
Why Are We Cautious About STT?
- The company has faced growth challenges as its 4.6% annual revenue increases over the last five years fell short of other financials companies
State Street is trading at $151.04 per share, or 12.2x forward P/E. If you’re considering STT for your portfolio, see our FREE research report to learn more.
Live Oak Bancshares (LOB)
Net Cash Position: $716.6 million (41.4% of Market Cap)
Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE: LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.
Why Are We Hesitant About LOB?
- Inferior net interest margin of 3.3% means it must compensate for lower profitability through increased loan originations
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.3% annually while its revenue grew
At $37.43 per share, Live Oak Bancshares trades at 1.3x forward P/B. To fully understand why you should be careful with LOB, check out our full research report (it’s free).
One Stock to Buy:
Tradeweb Markets (TW)
Net Cash Position: $1.95 billion (8% of Market Cap)
Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ: TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.
Why Should You Buy TW?
- Impressive 23.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 24.2% annually over the last two years, massively outpacing its peers
Tradeweb Markets’s stock price of $113.79 implies a valuation ratio of 28.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
