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. That said, here is one company with a net cash position that balances growth with stability and two that may struggle.
Two Stocks to Sell:
United Therapeutics (UTHR)
Net Cash Position: $2.16 billion (10% of Market Cap)
Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.
Why Does UTHR Give Us Pause?
- Sales are projected to tank by 3.2% over the next 12 months as demand evaporates
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 6.6 percentage points
- Free cash flow margin dropped by 1.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
United Therapeutics is trading at $503.96 per share, or 17.6x forward P/E. To fully understand why you should be careful with UTHR, check out our full research report (it’s free).
Omnicell (OMCL)
Net Cash Position: $112.5 million (7.6% of Market Cap)
Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.
Why Are We Out on OMCL?
- Sales trends were unexciting over the last five years as its 4.8% annual growth was below the typical healthcare company
- Earnings per share have dipped by 6.2% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $32.24 per share, Omnicell trades at 18.7x forward P/E. If you’re considering OMCL for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Evercore (EVR)
Net Cash Position: $651.4 million (6% of Market Cap)
Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore (NYSE:EVR) is an independent investment banking firm that provides strategic advisory, capital markets, and wealth management services to corporations, financial sponsors, and high-net-worth individuals.
What Makes EVR Stand Out?
- Annual revenue growth of 33.9% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 62% over the last two years outstripped its revenue performance
- Industry-leading 32.2% return on equity demonstrates management’s skill in finding high-return investments
Evercore’s stock price of $283.54 implies a valuation ratio of 15x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.