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. That said, here is one company with a net cash position that can leverage its balance sheet to grow and two that may struggle.
Two Stocks to Sell:
Privia Health (PRVA)
Net Cash Position: $410.5 million (11.6% of Market Cap)
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Why Does PRVA Fall Short?
- Modest revenue base of $2.25 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Poor free cash flow margin of 5% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Underwhelming 0% return on capital reflects management’s difficulties in finding profitable growth opportunities
Privia Health is trading at $28.07 per share, or 26.2x forward P/E. Dive into our free research report to see why there are better opportunities than PRVA.
Hamilton Insurance Group (HG)
Net Cash Position: $805.7 million (24.1% of Market Cap)
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Do We Think Twice About HG?
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Annual earnings per share growth of 14% underperformed its revenue over the last two years, showing its incremental sales were less profitable
Hamilton Insurance Group’s stock price of $34.02 implies a valuation ratio of 1.2x forward P/B. If you’re considering HG for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
SEI Investments (SEIC)
Net Cash Position: $343 million (2.9% of Market Cap)
Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ: SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.
Why Is SEIC a Top Pick?
- Annual revenue growth of 9.9% over the last two years was above the sector average and underscores its products and services value to customers
- Share repurchases over the last two years enabled its annual earnings per share growth of 26% to outpace its revenue gains
- Industry-leading 26.5% return on equity demonstrates management’s skill in finding high-return investments
At $98.15 per share, SEI Investments trades at 15.3x 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
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
