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Are you a growth investor that likes to dig deep into a company's financial statements? Today, we focus on small-cap companies whose fundamentals indicate that not only are these companies growing fast, but they're doing it in right way: by reliably raking in profits. If you prefer companies that can steadily grow over the long term, you'll like the list we came up with today.

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.

Return on Assets (ROA) illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the company's assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.

Return on Equity (ROE) is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it allows investors to get a real picture of how the company is generating these returns and helps identify parts of the company that may be underperforming.

We first looked for small cap stocks. We next screened for businesses that are considered high-growth, with 1-year projected EPS growth above 25%. We then looked for companies with strong profitability (ROA > 10%)(ROE [TTM]>30%). We did not screen out any sectors.

Do you think these small-cap stocks will break through to new highs? Please use our list to assist with your own analysis.

1) Select Comfort Corporation (SCSS)

Sector:Consumer Goods
Industry:Home Furnishings & Fixtures
Market Cap:$1.23B
Beta:3.80

Select Comfort Corporation has a 1-Year Projected Earnings Per Share Growth Rate of 25.69%, a Return on Assets of 26.34%, and a Return on Equity of 55.94%. The short interest was 14.47% as of 07/05/2012. Select Comfort Corporation, together with its subsidiaries, engages in the design, manufacture, marketing, distribution, and retail of adjustable-firmness mattresses and other sleep-related products primarily in the United States and Canada. The company offers its products under the Sleep Number brand name. Select Comfort Corporation sells its products through retail, direct marketing, and e-commerce channels.

2) Medidata Solutions, Inc. (MDSO)

Sector:Technology
Industry:Healthcare Information Services
Market Cap:$810.14M
Beta:-

Medidata Solutions, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 27.68%, a Return on Assets of 22.28%, and a Return on Equity of 46.85%. The short interest was 8.51% as of 07/05/2012.

Medidata Solutions, Inc. provides software-as-a-service based clinical development solutions for life science organizations worldwide. Its solutions comprise software and services that allow customers to increase the value of their development programs by designing, planning, and managing key aspects of the clinical trial process, including study and protocol design, trial planning and budgeting, site negotiation, clinical portal, trial management, randomization and trial supply management, clinical data capture and management, safety events capture, medical coding, clinical business analytics, and data flow and interoperability. The company primarily offers Medidata Rave, a comprehensive platform for capturing and managing clinical data.

3) Flotek Industries Inc. (FTK)

Sector:Basic Materials
Industry:Specialty Chemicals
Market Cap:$472.44M
Beta:2.20

Flotek Industries Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 41.86%, a Return on Assets of 12.58%, and a Return on Equity of 49.63%. The short interest was 17.26% as of 07/05/2012. Flotek Industries, Inc., together with its subsidiaries, develops and supplies drilling and production related products and services to the energy and mining industries in the United States and internationally.

The company operates in three segments: Chemicals, Drilling, and Artificial Lift. The Chemicals segment designs, develops, manufactures, packages, and markets specialty chemicals used by oilfield service companies in oil and natural gas well drilling, cementing, stimulation, and production activities.

4) Spirit Airlines, Inc. (SAVE)

Sector:Services
Industry:Major Airlines
Market Cap:$1.45B
Beta:-

Spirit Airlines, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 27.69%, a Return on Assets of 13.23%, and a Return on Equity of 46.70%. The short interest was 2.45% as of 07/05/2012. Spirit Airlines, Inc. provides passenger airline services. It provides travel opportunities principally to and from south Florida, the northeast United States, the Caribbean, and Latin America. The company also offers optional travel-related products or services.

*Company profiles were sourced from Finviz.

Source: 4 Small Caps Growing Fast On Strong Earnings