Interested in technology stocks? Interested in stocks paying dividend income? In search of companies that can manage their debt well? Do you prefer companies that can manage their long term debt? Do you value companies holding large amounts of cash? For ideas on how to start your own search, we ran a screen.
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.
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).
We first looked for technology dividend stocks. From here, we then looked for companies that operate with little to no debt (D/E Ratio<.3). We then screened for businesses that operate with little to no long term debt (Long Term D/E Ratio<.1). From here, we then looked for companies that have a substantial amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We did not screen out any market caps.
Do you think these stocks have strong enough fundamentals to move higher? Please use our list to assist with your own analysis.
1) RF Industries Ltd. (RFIL)
RF Industries Ltd. has a Dividend Yield of 5.65% and Payout Ratio of 516.55% and Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Current Ratio of 6.40 and Quick Ratio of 3.85. The short interest was 0.13% as of 05/12/2012. RF Industries, Ltd. provides interconnect products and systems for radio frequency (RF) communications devices and wireless digital transmission systems in the United States and internationally. Its Connector and Cable Assembly division designs, manufactures, and distributes coaxial connectors and cable assemblies that are integrated with coaxial connectors. The company's Aviel Electronics division engages in the design, manufacture, and distribution of specialty and custom RF connectors primarily for aerospace and military customers.
2) Rimage Corp. (RIMG)
|Industry:||Data Storage Devices|
Rimage Corp. has a Dividend Yield of 7.93% and Payout Ratio of 162.08% and Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Current Ratio of 4.88 and Quick Ratio of 4.58. The short interest was 4.57% as of 05/12/2012. Rimage Corporation provides disc publishing and virtual publishing solutions that enable businesses to deliver digital content to their customers and employees worldwide. Its solutions enable delivery of videos, documents, audio files, and images. The company's digital publishing solutions archive, distribute, and protect content on CDs, DVDs, and Blu-Ray Discs. It also offers a video platform, which captures, manages, and distributes live and on-demand content.
3) Electro-Sensors Inc. (ELSE)
|Industry:||Scientific & Technical Instruments|
Electro-Sensors Inc. has a Dividend Yield of 3.88% and Payout Ratio of 90.65% and Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Current Ratio of 33.18 and Quick Ratio of 29.39. The short interest was 0.04% as of 05/12/2012. Electro-Sensors, Inc. engages in the manufacture and distribution of industrial production monitoring and process control systems; and the development and distribution of PC-based software for automated survey processing and hand printed character recognition. Its Production Monitoring Division manufactures and sells various monitoring systems that measure actual machine production and operation rates, as well as systems that regulate the speed of related machines in production processes. This division's products comprise speed monitoring systems, including a line of digital products, which translate sensor impulses from its production monitoring systems into digital readouts indicating production counts or rates, such as parts, gallons, or board feet; alarm systems, tachometers, and other devices that translate impulses from the sensors into alarm signals, computer inputs, or digital displays; and drive control system products, which monitor machine operation levels and regulate the speed of motors on related machines in a production sequence.
4) Computer Programs & Systems Inc. (CPSI)
|Industry:||Healthcare Information Services|
Computer Programs & Systems Inc. has a Dividend Yield of 3.22% and Payout Ratio of 69.49% and Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Current Ratio of 2.84 and Quick Ratio of 2.74. The short interest was 5.28% as of 05/12/2012. Computer Programs and Systems, Inc., a healthcare information technology company, designs, develops, markets, installs, and supports computerized information technology systems to small and midsize hospitals in the United States. Its enterprise-wide system automates the management of clinical and financial data across the primary functional areas of a hospital. The company offers services that enable customers to outsource certain data-related business processes in the areas of clinical care, revenue cycle management, cost control, and regulatory compliance.
5) Astro-Med Inc. (ALOT)
Astro-Med Inc. has a Dividend Yield of 3.38% and Payout Ratio of 65.68% and Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00 and Current Ratio of 6.34 and Quick Ratio of 4.64. The short interest was 0.10% as of 05/12/2012. Astro-Med, Inc. designs, develops, manufactures, and distributes various specialty printers, and data acquisition and analysis systems primarily in the United States. It operates in three segments: Test & Measurement (T&M), QuickLabel Systems (QuickLabel), and Grass Technologies (Grass). The T&M segment offers a suite of ruggedized printer products for military and commercial applications for use in avionics industry to print weather maps, communications, and other critical flight information.
6) Communications Systems Inc. (JCS)
Communications Systems Inc. has a Dividend Yield of 5.47% and Payout Ratio of 52.07% and Debt/Equity Ratio of 0.02 and Long Term Debt/Equity Ratio of 0.02 and Current Ratio of 5.85 and Quick Ratio of 4.16. The short interest was 2.47% as of 05/12/2012. Communications Systems, Inc., together with its subsidiaries, manufactures and sells modular connecting and wiring devices, digital subscriber line filters, structured wiring systems, and media and rate conversion products primarily in North America, Europe, the Middle East, and Africa. The company's Suttle segment manufactures and markets copper and fiber connectivity systems, enclosure systems, XDSL filters and splitters, and active technologies for voice, data, and video communications under the Suttle brand name; and residential structured wiring products under the SOHO Access brand name. This segment offers its products directly and through distributors to communication companies, smaller telephone companies, electrical/low voltage contractors, home builders, cable customers, and original equipment manufacturers.
*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.