2 Cash-Heavy Stocks with Impressive Fundamentals and 1 We Turn Down

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.

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. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one that may struggle.

One Stock to Sell:

Graham Corporation (GHM)

Net Cash Position: $14.23 million (1.8% of Market Cap)

Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.

Why Is GHM Not Exciting?

1. Operating margin of 2.3% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
2. Underwhelming 3.1% return on capital reflects management’s difficulties in finding profitable growth opportunities
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Graham Corporation is trading at $70.58 per share, or 50.6x forward P/E. Check out our free in-depth research report to learn more about why GHM doesn’t pass our bar.

Two Stocks to Buy:

monday.com (MNDY)

Net Cash Position: $1.62 billion (25.1% of Market Cap)

With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ:MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.

Why Should You Buy MNDY?

1. Ability to secure long-term commitments with customers is evident in its 28.8% ARR growth over the last year
2. Superior software functionality and low servicing costs result in a best-in-class gross margin of 89.2%
3. MNDY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $125.89 per share, monday.com trades at 4.9x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

CLEAR Secure (YOU)

Net Cash Position: $530.6 million (15.8% of Market Cap)

Recognized by its signature blue lanes and biometric pods at airport checkpoints across America, CLEAR Secure (NYSE:YOU) provides biometric identity verification technology that allows subscribers to bypass regular security lines at airports and access secure experiences at various venues.

Why Is YOU a Good Business?

1. Annual revenue growth of 23.2% over the last two years was superb and indicates its market share is rising
2. Prominent and differentiated software leads to a best-in-class gross margin of 86%
3. Excellent operating margin of 19.2% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last year

CLEAR Secure’s stock price of $34.35 implies a valuation ratio of 3.5x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.