Interested in gaining exposure to healthcare companies? Do you prefer stocks that pay their fair share in dividend income? Interested in companies with minimal debt? We ran a screen you might be interested in.
The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.
The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).
The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble.
We first looked for healthcare dividend stocks. We then looked for companies that have strong liquidity (Current Ratio>2)(Quick Ratio>2). We then looked for businesses that have maintained a sound capital structure (D/E Ratio<.3). We did not screen out any market caps.
Do you think these stocks offer both value and growth? Please use our list to assist with your own analysis.
1) Mesa Laboratories Inc. (MLAB)
|Industry:||Medical Instruments & Supplies|
Mesa Laboratories Inc. has a Dividend yield of 1.03% and Current Ratio of 3.77 and Quick Ratio of 2.72 and Debt/Equity Ratio of 0.04. The short interest was 0.08% as of 04/28/2012. Mesa Laboratories, Inc. designs, manufactures, and markets instruments and disposable products utilized primarily in healthcare, pharmaceutical, food and beverage, medical device, and petrochemical industries. The company offers DATATRACE data loggers that are used in critical manufacturing, quality control, and validation applications to measure temperature, humidity, and pressure inside a process or inside a product during manufacturing; and biological indicators and chemical indicators used to assess the effectiveness of sterilization processes, including steam, gas, hydrogen peroxide, and radiation under the Mesa, Apex, SGM Biotech, and Raven brands. It also provides Torqo torque testing systems, which are used to measure bottle cap tightness in the beverage and pharmaceutical industries; Medical meters, which are used for quality control in dialysis clinics and dialysis machine manufacturing operations; and Nusonics concentration analyzers, pipeline interface detectors, and flow meter products used in the chemical, food, pharmaceutical, and plastics industries.
2) PetMed Express Inc. (PETS)
PetMed Express Inc. has a Dividend yield of 4.46% and Current Ratio of 10.11 and Quick Ratio of 6.95 and Debt/Equity Ratio of 0.00. The short interest was 24.64% as of 04/28/2012. PetMed Express, Inc., doing business as 1-800-PetMeds, operates a pet pharmacy in the United States. It markets non-prescription and prescription pet medications; and other health products for dogs and cats, as well as direct to consumers. The company's non-prescription medications include flea and tick control products, bone and joint care products, vitamins and nutritional supplements, and hygiene products.
3) Stryker Corp. (SYK)
|Industry:||Medical Appliances & Equipment|
Stryker Corp. has a Dividend yield of 1.56% and Current Ratio of 4.67 and Quick Ratio of 3.82 and Debt/Equity Ratio of 0.22. The short interest was 1.53% as of 04/28/2012. Stryker Corporation, together with its subsidiaries, operates as a medical technology company. The company operates in three segments: Reconstructive, MedSurg, and Neurotechnology and Spine. The Reconstructive segment offers orthopaedic reconstructive (hip and knee) and trauma implant systems, as well as other related products. The MedSurg segment provides surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling and emergency medical equipment, reprocessed and remanufactured medical devices, and other medical device products.
4) Techne Corp. (TECH)
|Industry:||Medical Appliances & Equipment|
Techne Corp. has a Dividend yield of 1.65% and Current Ratio of 16.09 and Quick Ratio of 13.19 and Debt/Equity Ratio of 0.00. The short interest was 2.28% as of 04/28/2012. TECHNE Corporation develops, manufactures, and sells biotechnology products, and hematology calibrators and controls worldwide. The company's Biotechnology segment offers proteins, such as cytokines, and enzyme substrates and inhibitors; antibodies, including polyclonal and monoclonal antibodies; immunoassays comprising quantikine kits for the detection of human and animal proteins, and immunoassays that allow researchers to quantify a specific analyte in a biological fluids sample; clinical diagnostic immunoassay kits consisting of erythropoietin, transferrin receptor, and beta2-microglobulin immunoassays for use as in vitro diagnostic devices; flow cytometry products, such as fluorochrome labeled antibodies and kits; intracellular cell signaling products, including antibodies, phospho-specific antibodies, antibody arrays, active caspases, kinases, and phosphatases, and ELISA assays to measure the activity of apoptotic and signaling molecules; and natural and synthetic chemical compounds for use as agonists, antagonists, and inhibitors of various biological functions by investigators. Its Hematology segment provides whole blood CBC controls controls and calibrators; linearity and reportable range controls for the assessment of the linearity of hematology analyzers for white blood cells, red blood cells, platelets, and reticulocytes; whole blood reticulocyte controls for manual and automated counting of reticulocytes; whole blood flow cytometry controls for the identification and quantification white blood cells; whole blood glucose/hemoglobin control to monitor instruments, which measure glucose and hemoglobin in blood; erythrocyte sedimentation rate control to monitor erythrocyte sedimentation rate tests; and multi-purpose platelet reference controls, such as Platelet-Trol II and Platelet-Trol Extended for use by automated and semi-automated analyzers, which monitor platelet levels. The company was founded in 1976 and is headquartered in Minneapolis, Minnesota.
*Company profiles were sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.