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Stock impact report

2 Cash-Heavy Stocks to Consider Right Now and 1 We Brush Off [Yahoo! Finance]

ACV Auctions Inc. Class A (ACVA) 
Company Research Source: Yahoo! Finance
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. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one best left off your watchlist. One Stock to Sell: ACV Auctions (ACVA) Net Cash Position: $76.27 million (8.6% of Market Cap) Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars. Why Is ACVA Not Exciting? Gross margin of 27.1% reflects its high servicing costs Highly competitive market means it's on the never-ending treadmill of sales and marketing spend Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.6% for the last two years ACV Auctions's stock price of $5.11 implies a valuation ratio of 10.6x forward EV/EBITDA. If you're Show less Read more
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