Are you looking for mid-sized companies that still have room to grow? Do you look for companies with low debt? Do you prefer companies with strong profits? For ideas on where to look, we ran a screen you may be interested in.
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.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.
Return on Assets [ROA] illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the company's assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.
We first looked for mid cap stocks. We next screened for businesses that have maintained a sound capital structure (D/E Ratio<.3). We then screened for businesses that have shown strong bottom line growth over the last year (1-year fiscal EPS growth rate>10%)(ROA > 10%). We did not screen out any sectors.
Do you think these mid-cap stocks have higher to rise? Please use our list to assist with your own analysis.
1) Buckle Inc. (NYSE:BKE)
Buckle Inc. has a Debt/Equity Ratio of 0.00 and Earnings Per Share Growth of 11.66% and Return on Assets of 29.51%. The short interest was 24.78% as of 04/28/2012. The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the continental United States. Its casual apparel products include denims, casual bottoms, tops, sportswear, and outerwear. The company also sells its products through operating buckle.
2) BMC Software Inc. (NASDAQ:BMC)
BMC Software Inc. has a Debt/Equity Ratio of 0.22 and Earnings Per Share Growth of 15.20% and Return on Assets of 10.83%. The short interest was 1.71% as of 04/28/2012. BMC Software, Inc. develops software that provides system and service management solutions for enterprises in the United States and internationally. The company operates in two segments, Enterprise Service Management and Mainframe Service Management. The Enterprise Service Management segment offers service assurance solutions that manage availability and performance management, event management, service impact management, and capacity management; service automation solutions managing provisioning, configuration change, and compliance automation for servers, networks, applications, and databases; service support solutions, which manages service desk, incident management, service request management, problem management, asset management, service level management, change and release management, and identity management; and BMC Atrium that provides shared technologies that unify information and processes from disparate management tools, and assigns priorities to business services.
3) CBOE Holdings, Inc. (NASDAQ:CBOE)
CBOE Holdings, Inc. has a Debt/Equity Ratio of 0.00 and Earnings Per Share Growth of 48.04% and Return on Assets of 47.91%. The short interest was 9.20% as of 04/28/2012. CBOE Holdings, Inc., through its subsidiaries, operates markets for the trading of listed options contracts. The company provides marketplaces for trading the stocks of individual corporations; various market indexes; and other exchange-traded products, such as exchange-traded funds and exchange-traded notes. It also offers futures and options on futures products through a futures market.
4) CH Robinson Worldwide Inc. (NASDAQ:CHRW)
|Industry:||Air Delivery & Freight Services|
CH Robinson Worldwide Inc. has a Debt/Equity Ratio of 0.05 and Earnings Per Share Growth of 12.35% and Return on Assets of 20.88%. The short interest was 4.00% as of 04/28/2012. C.H. Robinson Worldwide, Inc., a third-party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide.
*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.