A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
Financial flexibility is valuable, but it’s not everything - at StockStory, we help you find the stocks that can not only survive but also outperform. That said, here is one company with a net cash position that can continue growing sustainably and two with hidden risks.
Two Stocks to Sell:
Asana (ASAN)
Net Cash Position: $213.7 million (8.1% of Market Cap)
Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE: ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.
Why Do We Steer Clear of ASAN?
- Offerings struggled to generate meaningful interest as its average billings growth of 9.3% over the last year did not impress
- Competitive market dynamics make it difficult to retain customers, leading to a weak 95.7% net revenue retention rate
- Complex implementation process for enterprise clients means customers take longer to ramp up, as seen in its extended payback periods
At $11.10 per share, Asana trades at 3.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ASAN.
OFG Bancorp (OFG)
Net Cash Position: $483 million (29.6% of Market Cap)
Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.
Why Does OFG Fall Short?
- 8.3% annual net interest income growth over the last five years was slower than its banking peers
- Forecasted net interest income decline of 1.6% for the upcoming 12 months implies demand will fall off a cliff
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 77.7 basis points (100 basis points = 1 percentage point)
OFG Bancorp’s stock price of $38.24 implies a valuation ratio of 1.1x forward P/B. To fully understand why you should be careful with OFG, check out our full research report (it’s free).
One Stock to Watch:
Grid Dynamics (GDYN)
Net Cash Position: $324.9 million (46.3% of Market Cap)
With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ: GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes.
Why Could GDYN Be a Winner?
- Annual revenue growth of 29.1% over the last five years was superb and indicates its market share increased during this cycle
- Earnings per share have massively outperformed its peers over the last five years, increasing by 22.2% annually
- Historical investments are beginning to pay off as its returns on capital are growing
Grid Dynamics is trading at $8.28 per share, or 19.5x 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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
