Are you looking for mid-sized companies that still have room to grow? Interested in consumer companies? Do you prefer stocks that analysts rate as 'Buy', or better? Interested in companies with minimal debt? Interested in companies with minimal long term debt? We ran a screen you might find useful.
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 consumer stocks. We then looked for companies that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We next screened for businesses that operate with little to no debt (D/E Ratio<.3). Next, we then screened for businesses that operate with little to no long term debt (Long Term D/E Ratio<.3).
Do you think these mid-cap stocks are worth more than the market currently says? Use this list as a starting-off point for your own analysis.
1) Carter's, Inc. (CRI)
|Industry:||Textile - Apparel Clothing|
Carter's, Inc. has a Analysts' Rating of 2.40 and Debt/Equity Ratio of 0.28 and Long Term Debt/Equity Ratio of 0.28. The short interest was 6.09% as of 05/23/2012. Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded children's wear. The company provides products under the Carter's, Child of Mine, Just One You, Precious Firsts, OshKosh, and related brand names. Its Carter's brand baby products include bodysuits, pants, undershirts, towels, washcloths, receiving blankets, layette gowns, bibs, caps, and booties; playclothes products consist of knit and woven cotton apparel; sleepwear products comprise pajamas and blanket sleepers; and other products consist of bedding, outerwear, swimwear, shoes, socks, diaper bags, gift sets, toys, and hair accessories.
2) Green Mountain Coffee Roasters Inc. (GMCR)
|Industry:||Processed & Packaged Goods|
Green Mountain Coffee Roasters Inc. has a Analysts' Rating of 2.40 and Debt/Equity Ratio of 0.21 and Long Term Debt/Equity Ratio of 0.20. The short interest was 23.81% as of 05/23/2012. Green Mountain Coffee Roasters, Inc. engages in the specialty coffee and coffee maker business. The company sources, produces, and sells approximately 200 varieties of coffee, cocoa, teas, and other beverages in K-Cup portion packs and coffee in traditional packaging, including whole bean and ground coffee selections in bags and ground coffee in fractional packs for use in at-home (AH) and away-from-home (AFH). It sells its products primarily in North America through supermarkets, club stores, and convenience stores; in restaurants and hospitality; and to office coffee distributors, as well as directly to consumers through its Website.
3) Fossil, Inc. (FOSL)
|Industry:||Recreational Goods, Other|
Fossil, Inc. has a Analysts' Rating of 2.00 and Debt/Equity Ratio of 0.02 and Long Term Debt/Equity Ratio of 0.01. The short interest was 8.11% as of 05/23/2012. Fossil, Inc. designs, develops, markets, and distributes consumer fashion accessories worldwide. It offers watches under its proprietary brands, such as FOSSIL, MICHELE, RELIC, and ZODIAC; and under the licensed brand names, including ADIDAS, ARMANI EXCHANGE, BURBERRY, DIESEL, DKNY, EMPORIO ARMANI, MARC BY MARC JACOBS, and MICHAEL KORS. The company designs, markets, and arranges for the manufacture of watches and accessories on behalf of mass market retailers, companies, and organizations as private label products or as premium and incentive items for use in various corporate events.
4) Nu Skin Enterprises Inc. (NUS)
Nu Skin Enterprises Inc. has a Analysts' Rating of 1.30 and Debt/Equity Ratio of 0.20 and Long Term Debt/Equity Ratio of 0.15. The short interest was 9.70% as of 05/23/2012. Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, such as ageLOC Transformation skin care system, Nu Skin 180 anti-aging skin therapy system, Nu Skin tri-phasic white, nutricentials, and Nu Skin Clear Action acne medication system; targeted treatments, including galvanic spa system, spa gels, spa body shaping gel, dermatic effects body contouring lotion, line corrector, skin conditioning gel, ultra recovery fluid, moisturizer, and skin refinisher; and total care line of products, such as body bar, liquid body lufra, body moisturizer, men's and dental care products, and hair mask.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.