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Most of the time, the cliche it takes money to make money rings true. Keeping this in mind, we looked at stocks in the industrial sector that have impressive growth projections for the coming year. The next logical question to investigate is whether or not there are a significant amount of cash reserves on hand to fund the expansion. Our list today of industrial stocks includes those that rose to the top. They all have EPS growth rates of 25% or greater in the coming year and a high level of liquidity. Take a look at our findings to see if any of these stocks pique your interest.

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 the company is to meet current obligations using liquid assets).

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.

We first looked for industrial stocks. We then screened for businesses that have strong liquidity (Current Ratio>2)(Quick Ratio>2). Next, we screened for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. We did not screen out any market caps.

Do you think these stocks are undervalued and have room to trade higher? Use our list to help with your own analysis.

1) Energy Recovery, Inc. (ERII)

Sector:Industrial Goods
Industry:Pollution & Treatment Controls
Market Cap:$132.26M
Beta:0.84

Energy Recovery, Inc. has a Current Ratio of 6.17, a Quick Ratio of 5.41, and a 1-Year Projected Earnings Per Share Growth Rate of 86.70%. The short interest was 10.24% as of 08/17/2012. Energy Recovery, Inc. develops, manufactures, and sells energy recovery devices, and high-pressure and circulation pumps primarily for use in seawater desalination in the United States and internationally. Its energy recovery devices comprise PX pressure exchanger devices and turbochargers; and pumps include high-pressure feed, circulation, and booster pumps. The company sells its products under the AquaBold, AquaSpire, ERI, PX, Pressure Exchanger, PX Pressure Exchanger, PEI, Pump Engineering, and Quadribaric trademarks.

2) Electro Scientific Industries Inc. (ESIO)

Sector:Industrial Goods
Industry:Industrial Electrical Equipment
Market Cap:$347.03M
Beta:1.37

Electro Scientific Industries Inc. has a Current Ratio of 6.17, a Quick Ratio of 4.81, and a 1-Year Projected Earnings Per Share Growth Rate of 183.33%. The short interest was 2.34% as of 08/17/2012. Electro Scientific Industries, Inc., together with its subsidiaries, provides laser-based manufacturing solutions worldwide. The company's laser systems enable precise structuring of micron to submicron features in components and devices, which are used in various end products in the consumer electronics, computer, communications, and other industries. It offers semiconductor memory yield systems used to manufacture dynamic random access memory devices; traditional silicon wafers; ultrathin silicon wafers used in the three-dimensional packaging applications; sapphire wafer scribing systems used in manufacturing light emitting diodes (LEDs); and laser liquid crystal display repair systems to enhance yields in the manufacture of flat panel displays.

3) LSI Industries Inc. (LYTS)

Sector:Industrial Goods
Industry:Industrial Electrical Equipment
Market Cap:$158.12M
Beta:1.59

LSI Industries Inc. has a Current Ratio of 4.87, a Quick Ratio of 2.88, and a 1-Year Projected Earnings Per Share Growth Rate of 142.11%. The short interest was 3.20% as of 08/17/2012. LSI Industries Inc. provides corporate visual image solutions in the United States, Canada, Australia, Latin America, Europe, and the Middle East. The company manufactures and markets outdoor and indoor lighting products for the commercial, industrial, and multi-site retail lighting markets, including the petroleum/convenience store market. Its lighting products include exterior area lighting, interior lighting, canopy lighting, landscape lighting, light emitting diode (LED) lighting, light poles, lighting analysis, and photometric layouts.

4) LSB Industries Inc. (LXU)

Sector:Industrial Goods
Industry:General Building Materials
Market Cap:$839.76M
Beta:1.67

LSB Industries Inc. has a Current Ratio of 4.06, a Quick Ratio of 3.37, and a 1-Year Projected Earnings Per Share Growth Rate of 46.50%. The short interest was 3.12% as of 08/17/2012. LSB Industries, Inc., through its subsidiaries, engages in the manufacture and sale of geothermal and water source heat pumps, air handling products, and chemical products. The company operates in two segments, Climate Control Business and Chemical Business. The Climate Control Business segment manufactures and sells heating, ventilation, and air conditioning (HVAC) products that include geothermal and water source heat pumps; hydronic fan coils; and other HVAC products, such as custom air handlers and modular geothermal chillers.

5) Simpson Manufacturing Co., Inc. (SSD)

Sector:Industrial Goods
Industry:Small Tools & Accessories
Market Cap:$1.27B
Beta:1.36

Simpson Manufacturing Co., Inc. has a Current Ratio of 4.95, a Quick Ratio of 3.09, and a 1-Year Projected Earnings Per Share Growth Rate of 41.18%. The short interest was 3.34% as of 08/17/2012. Simpson Manufacturing Co., Inc., through its subsidiaries, engages in the design, engineering, manufacture, and sale of building products. It offers wood-to-wood, wood-to-concrete, and wood-to-masonry connectors; screw fastening systems and collated screws; stainless steel fasteners; pre-fabricated shear walls and moment-frames; truss plates; and a range of adhesives, chemicals, mechanical anchors, carbide drill bits, and powder-actuated tools for concrete, masonry, and steel markets, as well as a range of concrete repair products and engineered materials for the repair, strengthening, and restoration of asphalt and masonry construction. The company markets its products to the residential construction, light industrial and commercial construction, remodeling, and do-it-yourself markets primarily in the United States, Canada, Europe, Asia, and the South Pacific.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz.

Source: 5 Cash-Loaded Industrial Stocks With Substantial Growth Projections