Image Source: Unsplash

In the volatile world of stock investing, few opportunities scream “value” louder than companies trading below their cash per share. This phenomenon occurs when a stock’s market price is lower than the amount of cash and cash equivalents divided by the number of outstanding shares—essentially meaning investors can buy a dollar’s worth of cash for less than a buck. When paired with little to no debt, these stocks offer a rare combination of safety and upside potential.

Why Buy Stocks Below Cash Per Share?

The allure is straightforward and compelling. First, downside protection is baked in: In the worst-case scenario, the company could liquidate its cash holdings, pay off any nominal debt, and return value to shareholders exceeding the current purchase price. This acts as a financial floor, shielding investors from total loss. Second, it often implies the underlying business is “free”—you’re paying for the cash pile but getting the operations, intellectual property, and growth prospects thrown in at no extra cost. Third, low-debt profiles minimize bankruptcy risk and interest burdens, allowing management flexibility to pivot, invest in R&D, or pursue acquisitions without the drag of leverage. Historically, such setups have attracted value investors like Warren Buffett, who famously sought “cigar butt” stocks—cheap, undervalued assets with one last puff of potential.

As of late September 2025, amid market rotations and sector-specific pressures, four notable names fit this profile: Alumis (ALMS), Arvinas (ARVN), Green Dot (GDOT), and Keros Therapeutics (KROS). These span biotech innovation and fintech stability, all with enterprise values dipping negative due to cash hoards outpacing market caps. Let’s dive in.

Alumis Inc. (ALMS): Precision Immunology on the Cheap

Alumis Inc. is a clinical-stage biopharmaceutical company laser-focused on immune-mediated diseases, leveraging a precision medicine platform to develop oral small-molecule therapies. Founded on cutting-edge genomics and AI-driven drug design, the company aims to transform treatments for conditions like psoriasis and atopic dermatitis, where current options fall short in efficacy or convenience.

Financially, Alumis is a textbook cash-rich bargain. As of June 30, 2025, it held $486.32 million in cash against just $38.78 million in debt—barely 8% of its liquid assets. With 96.88 million shares outstanding, that’s $5.02 in cash per share, dwarfing the September 26 closing price of $4.05 and a market cap of $421.46 million. Enterprise value? A negative -$26.08 million, signaling the market is essentially ignoring the biotech’s pipeline while over-discounting risks in early trials.

For investors, this setup offers fortress-like protection: Even if development hits snags, the cash runway extends years, funding Phase 2 readouts without dilution. Upside? Successful precision therapies could multiply value in a $100 billion immunology market.

Arvinas Inc. (ARVN): Degrading Disease Proteins for Pennies

Arvinas stands at the forefront of targeted protein degradation, pioneering PROTAC (proteolysis targeting chimeras) technology to tag and destroy disease-causing proteins inside cells—a leap beyond traditional inhibitors. The New Haven-based biotech targets oncology and neuroscience, with lead candidates like vepdegestrant in Phase 3 for breast cancer and ARV-102 advancing for neurodegenerative disorders.

On the balance sheet, Arvinas is awash in liquidity. Q2 2025 cash stood at $861.2 million, offset by a negligible $9.9 million in debt. Divided by 73.42 million shares, cash per share hits $11.73—well above the $8.27 close on September 26, with a $607.16 million market cap yielding a negative enterprise value of -$244.14 million. This undervaluation stems from trial delays and partnership dynamics, but the debt-free status (effectively) ensures no forced capital raises.

The advantage here is asymmetric: Minimal downside from the cash buffer, while PROTAC breakthroughs could validate a platform worth billions, attracting big pharma buyouts.

Green Dot Corporation (GDOT): Fintech Fortress with a Massive Cash Vault

Unlike its biotech peers, Green Dot Corporation operates in the more grounded realm of financial technology. As a registered bank holding company, it powers prepaid debit cards, digital banking, and payment platforms for underserved consumers and businesses—think Walmart’s MoneyCard or its B2B embedded finance solutions. Headquartered in Austin, Green Dot processes billions in transactions annually, capitalizing on the shift to cashless economies.

What sets it apart? An eye-popping $2.31 billion cash pile as of June 30, 2025, against $73.39 million in debt—less than 4% leverage. Per 55.39 million shares, that’s $41.71 in cash per share, towering over the $14.20 closing price and $786.58 million market cap. Enterprise value clocks in at a bizarre negative -$1.45 billion, reflecting regulatory headwinds and competition from neobanks, but underscoring the embedded value.

Investors get a stable, revenue-generating business (with recurring fees) essentially for free, backed by a war chest that could fuel acquisitions or share buybacks. Low debt amplifies resilience in economic downturns, when demand for affordable banking spikes.

Keros Therapeutics Inc. (KROS): Hematology Hope at a Discount

Keros Therapeutics is a clinical-stage biopharma zeroing in on hematologic disorders, developing novel activin receptor inhibitors to boost red blood cell production and treat conditions like myelodysplastic syndromes (MDS) and anemia. Its lead asset, KER-050, is in Phase 2 trials, with potential to address unmet needs in a market dominated by injectables.

Balance sheet-wise, Keros mirrors its peers: $690.21 million in cash at Q2 2025, dwarfing $17.95 million in debt. Cash per share? $17.00 across 40.62 million shares—edging out the $16.05 September 26 close and $651.88 million market cap, for a negative enterprise value of -$20.38 million. Clinical setbacks have pressured the stock, but the near-debtless structure provides a multi-year runway.

This translates to high-conviction value: Cash covers the downside, while positive trial data could catalyze a rerating in the $20 billion hematology space.

Navigating Risks in Cash-Rich Bargains

While these stocks offer compelling safety margins, they’re not risk-free. Biotechs like ALMS, ARVN, and KROS face binary trial outcomes and regulatory hurdles, potentially eroding cash through burns (though runways are long). GDOT contends with fintech disruption and consumer spending cycles.

In a market chasing growth narratives, these cash-heavy underdogs represent a contrarian play. With minimal debt and prices below cash per share, they embody the ultimate margin of safety—perfect for patient investors eyeing 2026 catalysts. As always, due diligence and diversification are key, but for value seekers, this quartet is worth a deeper look.

More By This Author:

Top 3 Stocks Using The Classic Ratios
Stocks Going Ex Dividend In September 2025
Beyond The Stock Market: Investing In History With Autographed Stock Certificates