Interested in technology stocks? Do you look for companies with low debt? Interested in companies with minimal long-term debt? Looking for undervalued stocks? We ran a screen you might be interested in.
The Long Term 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.
The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio, except that it uses the forecasted earnings instead. While this number might not be as accurate because it uses "forecasted" numbers, it does offer the benefit of illustrating analysts' expectations of a firm. If the market believes that earnings will grow moving forward, then the forward P/E should be lower than the current P/E. Financial Leverage, also known as the Equity Multiplier, illustrates how a firm is financing its assets. The lower the number the more a firm is financing its assets internally through stockholder equity. The higher this metric is the more the firm is relying on debt to finance its assets.
The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms, it lets an investor know how much the investment community is willing to pay for every dollar worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every dollars worth of a firm's sales. On the other hand, a firm is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community not hard rules to be clear. Price/Sales Ratio = Current Stock Price/Revenue (sales) per Share
We first looked for technology stocks. From here, we then looked for companies that have maintained a sound capital structure (D/E Ratio<.3). We then looked for businesses that operate with little to no long term debt (Long Term D/E Ratio<.1). We then looked for companies with a low price-multiple premium (forward P/E<10)(P/S<1). We did not screen out any market caps.
Do you think these stocks will perform well? Please use our list to assist with your own analysis.
1) Axcelis Technologies Inc. (ACLS)
|Industry:||Semiconductor Equipment & Materials|
Axcelis Technologies Inc. has a Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Forward Price/Earnings Ratio of 5.86 and Price/Sales Ratio of 0.41. The short interest was 2.81% as of 05/08/2012. Axcelis Technologies, Inc., together with its subsidiaries, designs, manufactures, and services ion implantation, dry strip, and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe and the Asia Pacific. It offers a line of high energy, high current, and medium current ion implanters for various applications, such as line of single wafer implanters, known as the Optima platform, comprising the Optima XE, the Optima HD, and the Optima MD. The company also offers dry strip tools, including the Integra RS, which comprises paired-chamber process modules.
2) Majesco Entertainment Co. (COOL)
|Industry:||Multimedia & Graphics Software|
Majesco Entertainment Co. has a Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Forward Price/Earnings Ratio of 5.71 and Price/Sales Ratio of 0.63. The short interest was 4.22% as of 05/08/2012. Majesco Entertainment Company develops and markets video game products primarily for family oriented, mass-market consumers primarily in the United States, Europe, and the PAL territories. The company publishes video games for various interactive entertainment hardware platforms, including Nintendo's DS, DSi, and Wii; Sony's PlayStation 3 and PlayStation Portable; Microsoft's Xbox 360; and personal computers. It also publishes games for various digital platforms consisting of mobile platforms, such as iPhone, iPad, and iPod Touch, as well as online platforms, including Facebook. The company sells its products primarily to retail chains, specialty retail stores, video game rental outlets, and distributors, as well as international publishers.
3) Data I/O Corp. (DAIO)
Data I/O Corp. has a Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Forward Price/Earnings Ratio of 9.85 and Price/Sales Ratio of 0.90. The short interest was 0.08% as of 05/08/2012. Data I/O Corporation designs, manufactures, and sells programming systems worldwide. The company's programming system products are used to program integrated circuits [ICS)] with the specific data necessary for the ICs. It provides off-line and in-line automated programming systems, including RoadRunner and RoadRunner3 series of in-line automated programming systems; PS Series of off-line medium/high volume and high mix automated systems; and FLX500 and FLXHD of off-line and moderate volume automated system. The company also offers non-automated programming systems comprising FlashPAK II/III, a low mix and low volume system; and Sprint/Unifamily, a low volume and engineering non-automated system.
4) CSP Inc. (CSPI)
|Industry:||Business Software & Services|
CSP Inc. has a Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Forward Price/Earnings Ratio of 1.59 and Price/Sales Ratio of 0.19. The short interest was 0.31% as of 05/08/2012. CSP Inc., together with its subsidiaries, engages in developing and marketing information technology [IT] integration solutions and high-performance cluster computer systems to industrial, commercial, and defense customers worldwide. The company operates in two segments, Systems, and Service and System Integration. The Systems segment is involved in the design and manufacture of commercial high-performance computer signal processing systems for various real-time applications in the defense and commercial markets.
5) Datalink Corp. (DTLK)
|Industry:||Data Storage Devices|
Datalink Corp. has a Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Forward Price/Earnings Ratio of 9.48 and Price/Sales Ratio of 0.46. The short interest was 2.55% as of 05/08/2012. Datalink Corporation data center solutions and services to mid and large-size companies in the United States. It engages in assessing, designing, deploying, and supporting infrastructures, such as servers, storage, and networks; and reselling hardware and software from original equipment manufacturers. The company's portfolio of solutions and services comprise consolidation and virtualization services; data storage and protection services, including local and remote backup, disaster recovery, archive, and compliance services; advanced network infrastructure services that includes assessment, design, and deployment of network infrastructures; and business continuity and disaster recovery solutions. It also offers a suite of practice-specific consulting, analysis, design, implementation, management, and support services.
6) ClearOne Communications Inc. (CLRO)
ClearOne Communications Inc. has a Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Forward Price/Earnings Ratio of 7.50 and Price/Sales Ratio of 0.92. The short interest was 1.09% as of 05/08/2012. ClearOne Communications, Inc., a communications solutions company, develops and sells conferencing, collaboration, and streaming multimedia systems for audio, video, and Web applications. It develops, manufactures, markets, and services a line of audio conferencing products for personal, tabletop, premium, and professional uses by businesses and organizations, such as enterprise, healthcare, education and distance learning, government, legal, and finance organizations. The company also offers various residential products under the NetStreams DigilinX brand and commercial products under the VIEW brand, which deliver the Internet protocol (IP) A/V experience by streaming high definition audio and video, and control over TCP/IP networks.
*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.