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.
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 are three companies with net cash positions that don’t make the cut and some better choices instead.
DNOW (DNOW)
Net Cash Position: $216 million (14.7% of Market Cap)
Spun off from National Oilwell Varco, DNOW (NYSE: DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.
Why Does DNOW Worry Us?
- Annual revenue growth of 2.5% over the last two years was below our standards for the industrials sector
- Gross margin of 22.7% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Flat earnings per share over the last two years lagged its peers
DNOW is trading at $14.13 per share, or 21.3x forward EV-to-EBITDA. To fully understand why you should be careful with DNOW, check out our full research report (it’s free for active Edge members).
Origin Bancorp (OBK)
Net Cash Position: $509.7 million (45.1% of Market Cap)
Founded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE: OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.
Why Does OBK Fall Short?
- Muted 1.6% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.9% annually
- Estimated tangible book value per share growth of 8.8% for the next 12 months implies profitability will slow from its two-year trend
At $36.56 per share, Origin Bancorp trades at 0.9x forward P/B. If you’re considering OBK for your portfolio, see our FREE research report to learn more.
Stocks We Like More
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 6 Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
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