1 Cash-Heavy Stock for Long-Term Investors and 2 to Question

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6 days ago

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 with hidden risks.
Net Cash Position: $180.9 million (15.1% of Market Cap)
Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Do We Think MMI Will Underperform?
Products and services have few die-hard fans as sales have declined by 3.2% annually over the last five years
Cash-burning history makes us doubt the long-term viability of its business model
Shrinking returns on capital suggest that increasing competition is eating into the company's profitability
Marcus & Millichap is trading at $30.71 per share, or 307.1x forward P/E. Read our free research report to see why you should think twice about including MMI in your portfolio, it's free.
Net Cash Position: $242.4 million (3.6% of Market Cap)
Tracing its roots back to 1888 when a worker accidentally dropped a textile mill payroll into the dust, prompting the need for better banking, Synovus Financial (NYSE:SNV) is a regional financial services company that provides commercial and consumer banking, wealth management, and specialized lending services across five southeastern states.
Why Does SNV Fall Short?
Muted 4.2% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
Net interest margin of 3.2% reflects its high servicing and capital costs
Muted 2.9% annual tangible book value per share growth over the last five years shows its capital generation lagged behind its bank peers
At $48.76 per share, Synovus Financial trades at 1.3x forward P/B. Check out our free in-depth research report to learn more about why SNV doesn't pass our bar.
Net Cash Position: $1.10 billion (16.4% of Market Cap)
Founded as an open-source project in 2011, GitLab (NASDAQ:GTLB) is a leading software development tools platform.
Why Should You Buy GTLB?
ARR trends over the last year show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
Superior software functionality and low servicing costs result in a best-in-class gross margin of 88.6%
Operating margin improvement of 14.5 percentage points over the last year demonstrates its ability to scale efficiently
GitLab's stock price of $40.86 implies a valuation ratio of 6.8x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it's free.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today