1 Cash-Heavy Stock with Promising Prospects and 2 We Find Risky

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.

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 leverage its balance sheet to grow and two that may struggle.

Two Stocks to Sell:

Regeneron (REGN)

Net Cash Position: $5.86 billion (7.6% of Market Cap)

Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ:REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.

Why Are We Cautious About REGN?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.6% over the last two years was below our standards for the healthcare sector
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 26.8 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

Regeneron’s stock price of $750.57 implies a valuation ratio of 16.8x forward P/E. To fully understand why you should be careful with REGN, check out our full research report (it’s free).

First Bancorp (FBNC)

Net Cash Position: $491 million (19.9% of Market Cap)

Founded during the Great Depression in 1934 and originally known as Montgomery Bancorp, First Bancorp (NASDAQ:FBNC) is a community-oriented commercial bank providing a wide range of financial services to businesses and individuals in North and South Carolina.

Why Does FBNC Give Us Pause?

1. Annual revenue growth of 2% over the last two years was below our standards for the banking sector
2. Net interest margin of 3.1% is well below other banks, signaling its loans aren’t very profitable
3. Performance over the past two years shows its incremental sales were less profitable as its earnings per share were flat

At $59.51 per share, First Bancorp trades at 1.5x forward P/B. Check out our free in-depth research report to learn more about why FBNC doesn’t pass our bar.

One Stock to Watch:

WEBTOON (WBTN)

Net Cash Position: $558.1 million (34.3% of Market Cap)

Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ:WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.

Why Should WBTN Be on Your Watchlist?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 8.9% annual sales growth over the last three years
2. Adjusted operating profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient
3. Additional sales over the last two years increased its profitability as the 31.9% annual growth in its earnings per share outpaced its revenue

WEBTOON is trading at $12.19 per share, or 84.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.