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. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one with hidden risks.
One Stock to Sell:
Hamilton Insurance Group (HG)
Net Cash Position: $805.7 million (26.5% 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 Does HG Give Us Pause?
- Estimated sales growth of 2.3% for the next 12 months implies demand will slow from its two-year trend
- Performance over the past two years shows its incremental sales were less profitable, as its 14% annual earnings per share growth trailed its revenue gains
Hamilton Insurance Group’s stock price of $30.70 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than HG.
Two Stocks to Watch:
Champion Homes (SKY)
Net Cash Position: $540.6 million (13.3% of Market Cap)
Founded in 1951, Champion Homes (NYSE: SKY) is a manufacturer of modular homes and buildings in North America.
Why Does SKY Stand Out?
- Annual revenue growth of 15.4% over the last two years was superb and indicates its market share increased during this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 29.4% exceeded its revenue gains over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Champion Homes is trading at $73.44 per share, or 21.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
SouthState (SSB)
Net Cash Position: $277.7 million (2.9% of Market Cap)
With roots dating back to the Great Depression era of 1933, SouthState (NYSE: SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
Why Do We Like SSB?
- Impressive 19.3% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Net interest margin increased by 42 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
- Efficiency ratio improved by 15.3 percentage points over the last five years as it scaled
At $97.50 per share, SouthState trades at 1x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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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.
