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In the tech sector, where companies live and die by innovation, it's all about staying ahead of competitors. But in the quest to stay ahead, some tech companies lose perspective and become saddled with debt along the way. Paying off debt instead of plowing resources back into innovation is sub-optimal in any sector, but especially so when it comes to tech. With this idea in mind, we ran a screen to find technology stocks that are relatively debt free. In addition, to find the best of the best, we narrowed our search to only include those that received "Strong Buy" ratings from industry analysts, which can signal that a company has many other positive characteristics worth considering. We came up with a solid list of companies for you to begin your own research.

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.

We first looked for technology stocks. From here, we then looked for companies that operate with little to no debt (D/E Ratio < 0.1). We then looked for businesses that analysts rate as "Strong Buy" (mean recommendation < 2). We did not screen out any market caps.

Do you think these stocks deserve to grow higher? Please use our list to assist with your own analysis.

1) Agilysys Inc. (NASDAQ:AGYS)

SectorTechnology
IndustryApplication Software
Market Cap$188.38M
Beta2.40

AGYS stock chart

Key Metrics

Debt/Equity Ratio0.01
Analysts' Rating1.00
Short Interest2.55%

Agilysys, Inc., together with its subsidiaries, provides information technology solutions for the hospitality and retail markets in North America, the United Kingdom, and Asia. It operates in two segments, Hospitality Solutions Group (HSG) and Retail Solutions Group. The HSG segment develops, markets, and sells property and lodging management, point-of-sale (POS), and inventory and procurement applications to operate hotel, casino, destination resort, cruise line, and foodservice management establishments in the hospitality industry. The RSG segment provides systems integration services for retail POS, self-service, and wireless solutions, as well as business consulting, and hardware maintenance and support services. This segment also sells POS and mobile POS (MPOS) solutions to facilitate the check-out process, as well as other self-service capabilities; support and professional services, including consultation, analysis, design, installation, implementation, and lifecycle management, as well as onsite maintenance and help-desk support; and software hosting or subscription services. Agilysys, Inc. serves lodging, casino, destination resort, cruise line, foodservice, and retail industries. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1963 and is headquartered in Alpharetta, Georgia.

2) Towerstream Corporation (NASDAQ:TWER)

SectorTechnology
IndustryDiversified Communication Services
Market Cap$210.37M
Beta1.32

TWER stock chart

Key Metrics

Debt/Equity Ratio0.04
Analysts' Rating1.00
Short Interest14.51%

Towerstream Corporation, a 4G service provider, delivers high-speed wireless Internet access to businesses in the United States. The company offers broadband services to commercial customers, and delivers access over a wireless network transmitting over regulated and unregulated radio spectrum. Its service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data, and video services. The company provides its services to customers in New York City, Boston, Los Angeles, Chicago, Philadelphia, the San Francisco Bay area, Miami, Seattle, Dallas-Fort Worth, Nashville, Las Vegas-Reno, and the greater Providence area. It also operates Manhattan Wi-Fi network for mobile operators, retail/daily deal providers, and Wi-Fi operators. Towerstream Corporation offers its services directly, as well as through integrators, resellers, and online operators. The company was founded in 1999 and is based in Middletown, Rhode Island.

3) The Active Network, Inc. (NYSE:ACTV)

SectorTechnology
IndustryApplication Software
Market Cap$655.33M
Beta-

ACTV stock chart

Key Metrics

Debt/Equity Ratio0.04
Analysts' Rating1.30
Short Interest6.24%

The Active Network, Inc. provides organization-based cloud computing applications services to business customers in North America, Europe, and internationally. The company offers ActiveWorks, an organization-based cloud computing platform, which transforms the way organizers record, track, manage, and share information regarding activities and events. Its ActiveWorks back-office system pulls customers' participant management, operational reporting, volunteer management, and service and payment processing functions into one hosted system. The company also provides consulting services, which consist primarily of business mapping, project management services, and guidance on best practices in using its services; and implementation services, including system set-up and configuration, and data conversion, as well as develops customized training and education programs relating to both the use and administration of its services. It serves a range of customers, including community and sports organizations, large corporations, small and medium-sized businesses, educational institutions, federal and state government agencies, non-profit organizations, and other related entities. The company was formerly known as Racegate.com, Inc. and changed its name to The Active Network, Inc. in May 2001. The Active Network, Inc. was founded in 1998 and is headquartered in San Diego, California.

4) Perficient Inc. (NASDAQ:PRFT)

SectorTechnology
IndustryBusiness Software & Services
Market Cap$360.69M
Beta1.81

PRFT stock chart

Key Metrics

Debt/Equity Ratio0.06
Analysts' Rating1.30
Short Interest3.39%

Perficient, Inc. provides information technology consulting services to various enterprise companies primarily in the United States. The company designs, builds, and delivers business-driven technology solutions using third party software products. Its solutions include business integration and service oriented architectures, enterprise portals and collaboration, custom applications, and technology platform implementations, as well as customer relationship management, enterprise performance management, enterprise content management, and business intelligence solutions. The company's solutions enable its clients to operate a real-time enterprise that adapts business processes and the systems that support them to meet the changing demands of marketplace. Perficient, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/23/2012.

Source: 4 Low-Debt Tech Stocks That Analysts Strongly Recommend