Are you looking for mid-sized companies that still have room to grow? Do you prefer companies with strong profits? Interested in companies with minimal long term debt? If so, we ran a screen keeping these ideas in mind.
The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue
The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.
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.
The Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios.
We first looked for mid cap stocks. From here, we then looked for companies that have achieved strong bottom line profitability (Net Margin [TTM]>10%)(1-year operating margin>15%). We then looked for companies that have maintained a sound capital structure (D/E Ratio<.3). From here we looked for companies that operate with little to no long term debt (Long Term D/E Ratio<.1). We did not screen out any sectors.
Do you think these mid-cap stocks are worth more than the market currently says? Please use our list to assist with your own analysis.
1) Allied Nevada Gold Corp. (NYSEMKT:ANV)
Allied Nevada Gold Corp. has a Net Margin of 30.50% , Operating Profit Margin of 35.98% , Debt/Equity Ratio of 0.09 and Long Term Debt/Equity Ratio of 0.07. The short interest was 5.55% as of 05/14/2012. Allied Nevada Gold Corp., together with its subsidiaries, engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects. It principally operates the Hycroft Mine, an open pit heap leach gold and silver mine covering approximately 61,389 acres of mineral rights located in the west of Winnemucca, Nevada. The company is also involved in the exploration and development of various exploration properties, including Hasbrouck, Mountain View, Three Hills, Wildcat, Maverick Springs, and Pony Creek/Elliot Dome projects.
2) AboveNet, Inc. (NYSE:ABVT)
|Industry:||Internet Service Providers|
AboveNet, Inc. has a Net Margin of 15.77% and Operating Profit Margin of 25.44% and Debt/Equity Ratio of 0.08 and Long Term Debt/Equity Ratio of 0.08. The short interest was 3.30% as of 05/14/2012. AboveNet, Inc., together with its subsidiaries, provides high-bandwidth connectivity solutions to corporate enterprise clients, communication carriers, and government entities in the United States and Europe. It offers communications infrastructure and global Internet protocol (IP) network to various companies, including commercial banks, brokerage houses, insurance companies, investment banks, media companies, social networking companies, Web-centric companies, law firms, and medical and health care institutions. The company also provides high speed private optical network for electronic commerce and other mission-critical services, such as business Internet and cloud applications, regulatory compliance, disaster recovery, and business continuity.
3) Buckle Inc. (NYSE:BKE)
Buckle Inc. has a Net Margin of 14.25%, Operating Profit Margin of 22.23%, Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00. The short interest was 27.58% as of 05/14/2012. 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.
4) Ansys, Inc. (NASDAQ:ANSS)
|Industry:||Technical & System Software|
Ansys, Inc. has a Net Margin of 25.60% , Operating Profit Margin of 37.72%, Debt/Equity Ratio of 0.06 and Long Term Debt/Equity Ratio of 0.01. The short interest was 1.30% as of 05/14/2012. ANSYS, Inc. develops and markets engineering simulation software and technologies used by engineers, designers, researchers, and students in aerospace, automotive, manufacturing, electronics, biomedical, energy, and defense industries and academia worldwide. Its products include ANSYS Workbench, a framework upon which the company's suite of engineering simulation technologies are built; Multiphysics that creates virtual prototypes of designs; Structural Mechanics, which offers simulation tools for product design and optimization; Fluid Dynamics that provides modeling fluid flow and other related physical phenomena; and Explicit Dynamics, which simulates physical events.
The company also offers Electromagnetics, which provides field simulation software for designing electronic and electromechanical products; System Simulation, a collaborative simulation environment providing modeling scalability for evaluating entire systems, including 3-D high-fidelity models, multibody dynamics, and circuit reduced-order models; and ANSYS Engineering Knowledge Manager, a solution for simulation-based process and data management.
5) Apollo Group Inc. (NASDAQ:APOL)
|Industry:||Education & Training Services|
Apollo Group Inc. has a Net Margin of 13.43%, Operating Profit Margin of 21.04%, Debt/Equity Ratio of 0.12 and Long Term Debt/Equity Ratio of 0.09. The short interest was 11.31% as of 05/14/2012. Apollo Group, Inc., through its subsidiaries, provides online and on-campus educational programs and services at the undergraduate, master's, and doctoral levels. The company offers various degree programs in arts and sciences, business and management, criminal justice and security, education, health care, human services, nursing, psychology, and technology through its campus locations and learning centers in 40 states and the District of Columbia, and Puerto Rico, as well as through its online education delivery system.
It also provides various degree programs in Chile and Mexico, and through online; financial services education programs, including Master of Science in three majors, as well as certification programs in retirement, asset management, and other financial planning areas; and training and education to professionals in the legal and finance industries through its schools in the United Kingdom and a network of offices in Europe.
6) Akamai Technologies, Inc. (NASDAQ:AKAM)
|Industry:||Internet Information Providers|
Akamai Technologies, Inc. has a Net Margin of 16.10%, Operating Profit Margin of 24.08%, Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00. The short interest was 3.58% as of 05/14/2012. Akamai Technologies, Inc. provides content delivery and cloud infrastructure services for accelerating and improving applications over the Internet in the United States and internationally. The company offers application and cloud performance solutions to enhance the operation of the applications used by enterprises to connect with their employees, suppliers, and customers. Its solutions include Web Application Accelerator, which enables enterprises to run various applications; and IP Application Accelerator that is designed to optimize the performance, availability, and real-time sensitivity associated with IP-enabled applications delivered over Internet-related protocols.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Google Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.