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When a company wants to seize upon growth opportunities, sometimes they may get a little ahead of themselves. This can be seen when a company funds its growth by borrowing against its assets. In the short term, it may appear as an easy source of funding. But in the long term, it can catch up with the company if assets depreciate or profits plummet. From this perspective, we came up with a list of small cap stocks that have little long term debt. In addition, they all have EPS growth rates above 25% for the next five years. We think you will find the summaries and graphs below an interesting place to start your own assessment of these small cap stocks.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

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.

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 small cap stocks. We then looked for companies with projected high growth, measured by 5-year projected EPS growth above 25%. We next screened for businesses that have maintained a sound long term capital structure (Long Term D/E Ratio<.1). From here, we then looked for companies that operate with little to no debt (D/E Ratio<.1). We did not screen out any sectors.

Do you think these small-cap stocks should have higher valuations? Use our list along with your own analysis.

1) Cornerstone OnDemand, Inc. (NASDAQ:CSOD)

SectorTechnology
IndustryMultimedia & Graphics Software
Market Cap$1.35B
Beta-

CSOD stock chart

Key Metrics

5-Year Projected Earnings Per Share Growth Rate40.63%
Long Term Debt/Equity Ratio0.05
Debt/Equity Ratio0.10
Short Interest6.48%

Cornerstone OnDemand, Inc. provides learning and talent management solution delivered as software-as-a-service. The company offers three integrated cloud-based solutions for learning management, performance management, and extended enterprise. Its Cornerstone Learning Cloud helps clients deliver and manage enterprise training and development programs, as well as links employee development to other parts of the talent management lifecycle, including performance management and succession planning. The company's Cornerstone Performance Cloud allows clients to direct and measure performance at the individual, departmental, and organizational level through competency management, organizational goal setting, performance appraisal, compensation management, and development planning. Its Cornerstone Extended Enterprise Cloud helps clients extend learning and talent management to their customers, vendors, and distributors. The company also offers consulting services comprising implementation, integration, content, business consulting, and educational services; and account services, as well as resells third-party e-learning content. Its clients include multi-national corporations, large domestic enterprises, mid-market companies, public sector organizations, higher education institutions, and non-profit entities. The company sells its solution and services directly through its own sales force in North America and Europe; and indirectly through domestic and international network of distributors. Cornerstone OnDemand, Inc. was founded in 1999 and is headquartered in Santa Monica, California.

2) OYO Geospace Corp. (OYOG)

SectorTechnology
IndustryScientific & Technical Instruments
Market Cap$567.76M
Beta2.04

OYOG stock chart

Key Metrics

5-Year Projected Earnings Per Share Growth Rate37.00%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest4.36%

OYO Geospace Corporation engages in the design and manufacture of instruments and equipment used in the acquisition and processing of seismic data; and characterization and monitoring of producing oil and gas reservoirs. It also designs, manufactures, and distributes thermal imaging equipment and thermal media products for the screen print, point of sale, signage, and textile markets. The company's seismic products consist of land and marine nodal seismic data acquisition systems; multi-component geophones and hydrophones; seismic leader wires; geophone string and acquisition system connectors; seismic telemetry cables; marine seismic cable retrieval and steering devices; and data acquisition systems. It also provides permanently installed high-definition reservoir characterization products for ocean-bottom applications in producing oil and gas fields; and produces seismic borehole acquisition systems, which employ a fiber optic augmented wireline capable of high data transmission rates. In addition, it designs and manufactures power and communication transmission cable products, including various specialized cables primarily used in deepwater applications, such as remotely operated vehicle tethers, umbilicals, and electrical control cables, as well as armored cables that are engineered to withstand harsh offshore operating environments. Further, the company designs and manufactures industrial sensors for the vibration monitoring, security, and earthquake detection markets; and other specialty cable and connector products used in connection with global positioning products and water meter applications. It serves seismic contractors, and independent and government-owned oil and gas companies. OYO Geospace Corporation was founded in 1980 and is headquartered in Houston, Texas.

3) Genomic Health Inc. (NASDAQ:GHDX)

SectorHealthcare
IndustryMedical Laboratories & Research
Market Cap$1.04B
Beta0.49

GHDX stock chart

Key Metrics

5-Year Projected Earnings Per Share Growth Rate36.60%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest13.05%

Genomic Health, Inc., a molecular diagnostics company, engages in the development and commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer allowing physicians and patients to make individualized treatment decisions. The company provides the Oncotype DX invasive breast cancer test that is used for early stage invasive breast cancer patients to predict the likelihood of breast cancer recurrence and the likelihood of chemotherapy benefit. It also offers the Oncotype DX colon cancer test, which is used to predict the likelihood of colon cancer recurrence in patients with stage II disease. In addition, the company provides the Oncotype DX tests for patients with ductal carcinoma in situ, a pre-invasive form of breast cancer. Genomic Health, Inc. was founded in 2000 and is based in Redwood City, California.

4) Pandora Media, Inc. (NYSE:P)

SectorServices
IndustryBroadcasting - Radio
Market Cap$1.68B
Beta-

P stock chart

Key Metrics

5-Year Projected Earnings Per Share Growth Rate39.50%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest16.06%

Pandora Media, Inc. provides an Internet radio services in the United States. The company allows listeners to create up to 100 personalized stations to access unlimited hours of free music and comedy, as well as offers a paid subscription service to listeners. It is also involved in the sale of displays, audio advertising, and video advertising products to advertisers for delivery on computer, mobile, and other connected device platforms. As of January 31, 2012, the company had approximately 125 million registered users; and 47 million active users. Pandora Media, Inc. was founded in 2000 and is headquartered in Oakland, California.

5) CTC Media, Inc (NASDAQ:CTCM)

SectorServices
IndustryBroadcasting - TV
Market Cap$1.34B
Beta2.49

CTCM stock chart

Key Metrics

5-Year Projected Earnings Per Share Growth Rate35.90%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest1.50%

CTC Media, Inc., together with its subsidiaries, operates as an independent media company. It operates the CTC, Domashny, and Peretz television networks in Russia. The company also operates Channel 31, a television network in Kazakhstan, as well as a television channel in Moldova offering entertainment programming. In addition, it is involved in in-house production operations that focus on series, sitcoms, and shows. CTC Media, Inc. was founded in 1989 and is headquartered in Moscow, the Russian Federation.

6) Zillow, Inc. (NASDAQ:Z)

SectorServices
IndustryBusiness Services
Market Cap$1.20B
Beta-

Z stock chart

Key Metrics

5-Year Projected Earnings Per Share Growth Rate40.00%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest34.47%

Zillow, Inc. engages in the operation of a real estate information marketplace in the United States. It operates Zillow.com; Zillow Mobile, the company's suite of mobile real estate applications; and Zillow Mortgage marketplace, where borrowers connect with lenders to find loans and get mortgage rates. The company, through its Websites and mobile applications, provides information related to homes, real estate listings, and mortgages that enables homeowners, buyers, sellers, and renters to connect with real estate and mortgage professionals. It also offers current home value and rental price estimates. In addition, the company provides advertising products and services comprising marketplace advertising services, such as agent programs and mortgage marketplace services; and display advertising services, including graphical Web and mobile advertising services on zillow.com and individual Web pages, as well as on its mobile applications. Zillow, Inc. was founded in 2004 and is headquartered in Seattle, Washington.

7) Envestnet, Inc. (NYSE:ENV)

SectorServices
IndustryBusiness Services
Market Cap$365.73M
Beta-

ENV stock chart

Key Metrics

5-Year Projected Earnings Per Share Growth Rate38.40%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest2.46%

Envestnet, Inc., together with its subsidiaries, provides integrated wealth management software and services to financial advisors and institutions in the United States and internationally. The company's technology platform provides financial advisors with a series of integrated services, including risk assessment and selection of investment strategies, asset allocation models, research and due diligence, portfolio construction, proposal generation and paperwork preparation, model management and account rebalancing, account monitoring, customized fee billing, overlay services covering asset allocation, tax management and socially responsible investing, and aggregated multi-custodian performance reporting and communication tools, as well as access to a wide range of leading third-party asset custodians. It also offers Web-based access to a range of technology-enabled investment solutions, including separately managed accounts, which allow advisors to offer their investor clients a managed portfolio of securities with a personalized tax basis; unified managed accounts that allow the advisor to use various types of investment vehicles in one account; advisor as portfolio manager, where advisors create, implement, and maintain their own investment portfolio models to address specific client needs; and mutual funds and portfolios of exchange-traded funds, as well as access to a range of investment managers and investment strategists. The company was founded in 1999 and is headquartered in Chicago, Illinois.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/30/2012.

Source: 7 High-Growth Small Caps With Minimal Debt