Interested in following smaller companies? Interested in gaining exposure to services companies? Do you prefer high-growth stocks? Company liquidity is an important consideration in any stock analysis. Liquidity gives a company the ability to make big acquisitions if it sees investment opportunities, a cushion for future lulls in demand, and most importantly, it keeps a company's doors open. Are these the types of stocks that you're looking for? If so, you'll probably like this list.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
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 small cap services stocks. We next screened for businesses with estimated high-growth, with 1-year projected EPS growth above 25%. Next, we then screened for businesses with a large amount of cash on hand (Current Ratio>2)(Quick Ratio>2).
Do you think these small-cap stocks are undervalued and have room to trade higher? Use our list along with your own analysis.
1) Seacor Holdings Inc. (NYSE:CKH)
Seacor Holdings Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 55.34% and Current Ratio of 2.44 and Quick Ratio of 2.16. The short interest was 1.08% as of 05/16/2012. SEACOR Holdings Inc. owns, operates, invests in, and markets equipment primarily in offshore oil and gas, industrial aviation, and inland and coastal marine transportation industries worldwide. Its Offshore Marine Services segment operates support vessels to deliver cargo and personnel to offshore installations; handle anchors for drilling rigs and marine equipment; carry and launch remote operated vehicles; move personnel and supplies to offshore wind farms; support offshore construction and maintenance work; and provide accommodations for technicians and specialists, standby safety support, and emergency response services. This segment also offers shore bases, marine transport, and other supply chain management services; and supports well stimulation, seismic data gathering, and offshore accommodation projects.
2) TiVo Inc. (NASDAQ:TIVO)
TiVo Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 83.30% and Current Ratio of 4.45 and Quick Ratio of 4.33. The short interest was 9.80% as of 05/16/2012. TiVo Inc., together with its subsidiaries, provides technology and services for television solutions, including digital video recorders (DVRs) and connected televisions in the United States and internationally. The company offers subscription-based TiVo service, which enhances home entertainment by providing consumers with a way to record, watch, and control live television, as well as to receive videos, pictures, and movies from cable, broadcast, and broadband sources in one interface. It also provides a platform for advertising and audience research measurement services.
3) The Wendy's Company (NYSE:WEN)
The Wendy's Company has a 1-Year Projected Earnings Per Share Growth Rate of 40.00% and Current Ratio of 2.21 and Quick Ratio of 2.17. The short interest was 4.81% as of 05/16/2012. The Wendy's Company, through its subsidiaries, operates and franchises Wendy's quick service restaurants. The company's restaurants engage in the provision of hamburger sandwiches. As of January 1, 2012, it operated 6,594 restaurants, including 1,417 owned restaurants and 5,177 franchised restaurants in the United States and the United States territories, as well as in 27 foreign countries.
4) Bristow Group, Inc. (NYSE:BRS)
|Industry:||Air Services, Other|
Bristow Group, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 34.27% and Current Ratio of 4.17 and Quick Ratio of 3.22. The short interest was 5.44% as of 05/16/2012. Bristow Group Inc., together with its subsidiaries, provides helicopter services to the offshore energy industry primarily in Europe, West Africa, North America, Australia, and internationally. Its helicopters are used principally to transport personnel between onshore bases and offshore platforms, drilling rigs, and installations, as well as to transport time-sensitive equipment to offshore locations. The company also offers helicopter flight training services to commercial pilots and flight instructors through its Bristow Academy with facilities in Titusville, Florida; Concord, California; New Iberia, Louisiana and Gloucestershire, England.
5) K12, Inc. (NYSE:LRN)
|Industry:||Education & Training Services|
K12, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 43.75% and Current Ratio of 3.43 and Quick Ratio of 3.18. The short interest was 24.96% as of 05/16/2012. K12 Inc., a technology-based education company, provides proprietary curriculum, software systems, and educational services for individualized learning for students in kindergarten through 12th grade (K12) primarily in the United States. The company's products include K12 Curriculum, which consists of online lessons, learning kits, and lesson guides; online school platform, a Web-based software platform that provides access to its online lessons, lesson planning, and scheduling tools, as well as its progress tracking tool and assessment tracking tools; and student administration management system, a proprietary student information system that stores student-specific data and is used for various functions, including enrolling students in courses, assigning progress marks and grades, tracking student demographic data, and generating student transcripts. It also offers student community tools that foster communication and interaction among families and school personnel.
6) Builders FirstSource, Inc. (NASDAQ:BLDR)
|Industry:||Home Improvement Stores|
Builders FirstSource, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 74.20% and Current Ratio of 3.42 and Quick Ratio of 2.56. The short interest was 3.69% as of 05/16/2012. Builders FirstSource, Inc. engages in the manufacture and supply of structural and related building products for residential new construction primarily in the southern and eastern United States. The company offers prefabricated components, including floor trusses, roof trusses, wall panels, stairs, and engineered wood; and window and door products, such as aluminum and vinyl windows, and pre-hung interior and exterior doors, as well as assembles and distributes interior and exterior door units. It also provides lumber and lumber sheet products comprising dimensional lumber, plywood, and oriented strand board products; millwork products, including interior trim, exterior trim, columns, and posts, as well as custom exterior featured products; and other building products, such as cabinets, gypsum, hardware, composite materials, roofing, and insulation.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.