3 Cash-Heavy Stocks We're Skeptical Of

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. Keeping that in mind, here are three companies with net cash positions to steer clear of and a few alternatives to consider.

Boston Beer (SAM)

Net Cash Position: $209.6 million (8.1% of Market Cap)

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Why Does SAM Fall Short?

1. Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
2. Modest revenue base of $1.98 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Projected sales for the next 12 months are flat and suggest demand will be subdued

Boston Beer is trading at $245.24 per share, or 23.4x forward P/E. Dive into our free research report to see why there are better opportunities than SAM.

Korn Ferry (KFY)

Net Cash Position: $369.9 million (11.6% of Market Cap)

With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE:KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies.

Why Is KFY Not Exciting?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 3.3 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Korn Ferry’s stock price of $61.23 implies a valuation ratio of 11.1x forward P/E. Read our free research report to see why you should think twice about including KFY in your portfolio.

Lincoln Financial Group (LNC)

Net Cash Position: $3.24 billion (41.4% of Market Cap)

Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE:LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.

Why Do We Think Twice About LNC?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Net premiums earned remained stagnant over the last five years, indicating expansion challenges this cycle
3. Book value per share tumbled by 15.2% annually over the last five years, showing insurance sector trends are working against its favor during this cycle

At $40.88 per share, Lincoln Financial Group trades at 0.7x forward P/B. To fully understand why you should be careful with LNC, check out our full research report (it’s free).

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