A company that can’t handle its bills today doesn’t have to be worry about the challenges of tomorrow because it might not be around. A company's liquidity position is an important financial metric to never skim over even if it isn’t as glamorous as others related to profitability or growth. The Current Ratio is a good place to start when reviewing an company's liquidity strength.
The Current Ratio gauges a company's ability to repay short-term obligations with current assets. The higher the number the easier it is to accomplish this task. If the ratio is under 1 this indicates that the enterprise may not be able to cover all its obligations should they all came due at once. While a low ratio (X<1) doesn’t illustrate strong financial health it also doesn’t mean the company is likely to enter bankruptcy.
We ran a screen for Consumer Cyclical companies that have illustrated strong 1-Year Fiscal Revenue Growth (X>15%) despite tough economic conditions. From this narrowed pool we then screened for those that had ample levels of liquidity (Current Ratio>2).
The list is ranked from highest to lowest by 1-Year Fiscal Revenue Growth.
1. Superior Industries Internatio (SUP)
Sector | Consumer Cyclical |
Industry | Auto Parts |
Market Cap | $392M |
Beta | N/A |
Analyst Sentiment | 3/5-List Hold/Neutral (Neutral) |
The company produces and sells plastic products in India. SUP’s Fiscal 1-Year Revenue Growth rate is 71.78%. The Current Ratio is 6.07. The short interest is N/A as of 8/15/2011.
2. Lululemon Athletica, Inc. (LULU)
Sector | Consumer Cyclical |
Industry | Apparel Stores |
Market Cap | 4973 |
Beta | 2.43 |
Analyst Sentiment | 12/22 -List Hold/Neutral (Neutral) |
The company designs and sells athletic apparel. The Fiscal 1-Year Revenue Growth rate is 57.14%. LULU’s Current Ratio is 5.93.The short interest is 16.90% as of 8/15/2011.
3. Gentex Corporation (GNTX)
Sector | Consumer Cyclical |
Industry | Auto Parts |
Market Cap | $3206M |
Beta | 1.56 |
Analyst Sentiment | 6/11-List Buy/Outperform (Bullish) |
The company develops and sells electro-optical products to a variety of different industries in the US and abroad. GNTX’s Fiscal 1-Year Revenue Growth rate is 49.9%. The Current Ratio is 6.99. The short interest is 3% as of 8/15/2011.
4. Ctrip.com International, Ltd. (CTRP)
Sector | Consumer CyclicalConsumer Cycl |
Industry | Leisure |
Market Cap | 5244 |
Beta | 1.64 |
Analyst Sentiment | buy |
The company offers travel services for people going to China. CTRP’s Fiscal 1-Year Revenue Growth rate is 44.93%. The Current Ratio is 2.68. The short interest is N/A as of 8/15/2011.
5. Skechers USA, Inc. (SKX)
Sector | Consumer Cyclical |
Industry | Footwear & Accessories |
Market Cap | $720M |
Beta | 1.73 |
Analyst Sentiment | 3/6-List Hold/Neutral (Neutral) |
The company develops, manufactures, and sells footwear all over the world. SKX’s Fiscal 1-Year Revenue Growth rate is 39.87%. The Current Ratio is 2.95. The short interest is 19.00% as of 8/15/2011.
6. Bemis Co Inc (BMS)
Sector | Consumer Cyclical |
Industry | Packaging & Containers |
Market Cap | $2958M |
Beta | 0.75 |
Analyst Sentiment | 4/9-List Hold/Neutral (Neutral) |
The company manufactures and sells flexible packaging products and pressure sensitive materials all over the world. The Fiscal 1-Year Revenue Growth rate is 37.57%. BMS’s Current Ratio is 2.4. The short interest is 5% as of 8/15/2011.
7. Scripps Networks Interactive (SNI)
Sector | Consumer Cyclical |
Industry | Media - Diversified |
Market Cap | $6283M |
Beta | 1.15 |
Analyst Sentiment | 10/20-List Hold/Neutral (Neutral) |
The company operates as an Internet search & lifestyle content firm. The Fiscal 1-Year Revenue Growth rate is 34.12%. SNI’s Current Ratio is 8.04. The short interest is 3.30% as of 8/15/2011.
8. Priceline.com, Inc. (PCLN)
Sector Consumer Cyclical Industry Leisure Market Cap $22344M Beta 1.14 Analyst Sentiment 14/19-List Buy/Outperform (Bullish)
9. Focus Media Holding, Ltd. (FMCN) Sector Consumer Cyclical Industry Advertising Agencies Market Cap $3730M Beta 1.79 Analyst Sentiment 11/13-List Buy/Outperform (Bullish) The company offers multi-platform digital media company, operates out-of-home advertising network using audiovisual digital displays in China. Fiscal 1-Year Revenue Growth rate is 30%. FMCN’s Current Ratio is 5.07. The short interest is N/A as of 8/15/2011.
The company offers online travel services worldwide. The Fiscal 1-Year Revenue Growth rate is 31.93%. PCLN’s Current Ratio is 2.11. The short interest is 6.40% as of 8/15/2011.
We hope this list helps as investors do their own due diligence on Consumer Cyclical companies.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
