For investors who are interested in high growth opportunities, analyzing projected EPS growth rates is an obvious place to begin your search. But we all know that growth projections alone are not a substantial enough reason to invest. Companies must possess other attributes that point to a well laid foundation for expansion. Today we focused on industrial companies that have minimal debt as well as strong growth predicted for the coming year. By keeping debt to a minimum, a company can put all effort and financing into achieving the anticipated growth. Take a look at the short list of industrial stocks with these traits below to compare their data and see if any meet your standards.
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.
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 industrial stocks. Next, we then screened for businesses with estimated high-growth, with 1-year projected EPS growth above 25%. From here, we then looked for companies that operate with little to no debt (D/E Ratio<.1). We did not screen out any market caps.
Do you think these stocks will go up in price? Use this list as a starting-off point for your own analysis.
1) Electro Scientific Industries Inc. (ESIO)
|Industry||Industrial Electrical Equipment|
|1-Year Projected Earnings Per Share Growth Rate||183.33%|
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; and laser liquid crystal display repair systems to enhance yields in the manufacture of flat panel displays.
The company also produces test and inspection equipment used in quality control process during the production of multilayer ceramic capacitors (MLCCs); laser microvia engineering systems for electrical interconnect applications between layers in high-density circuit boards, and IC packages; and ultraviolet laser processing systems comprising single-beam and multi-beam systems that produce vias for improving yield of packages and substrates. Its laser microfabrication systems allow microelectronics, semiconductor, and other microtechnology manufacturers to physically alter select device features during high-volume production. In addition, the company designs and manufactures products that combine high-speed small parts handling technology with real-time control systems to provide solutions for manufacturers of MLCCs and other passive components, such as capacitor arrays, inductors, resistors, varistors and hybrid circuits.It sells its products through direct sales and service offices, value-added resellers, and independent representatives. The company was founded in 1944 and its headquarters is in Portland, Oregon.
2) Aixtron SE (AIXG)
|1-Year Projected Earnings Per Share Growth Rate||660.00%|
AIXTRON Aktiengesellschaft manufactures and sells deposition equipment to the semiconductor industry. Its solutions are used by a range of customers to build components for electronic and opto-electronic applications, which are used in displays, signaling, lighting, computing, fiber optic communication systems, wireless and mobile telephony applications, and optical and electronic storage devices. The company offers production and research scale deposition systems for silicon semiconductor market applications capable of depositing material films on wafers; and a range of peripheral equipment and services, including products capable of monitoring the concentration of gases in the air and of cleaning the exhaust gas from metal organic chemical vapor deposition processes.
It also assists its customers in designing the production layouts of tubing and switching devices for the gas supply to thin film deposition systems, as well as offers process technology, training, and consulting services. The company sells its products and services directly through strategically located sales and service facilities in Germany, the United States, the United Kingdom, Sweden, Japan, South Korea, China, and Taiwan, as well as through independent sales and service representatives in Japan, India, Israel, Poland, Russia, and Taiwan. AIXTRON Aktiengesellschaft was founded in 1983 and its headquarters is in Aachen, Germany.
3) Sterling Construction Co. Inc. (STRL)
|1-Year Projected Earnings Per Share Growth Rate||103.85%|
Sterling Construction Company, Inc., a heavy civil construction company, engages in the building, reconstruction, and repair of transportation and water infrastructure. Its transportation infrastructure projects include highways, roads, bridges, and light rail and commuter rail; and water infrastructure projects comprise water, wastewater, and storm drainage systems. The company also provides general contracting services, such as excavating, concrete and asphalt paving, installation of large-diameter water and wastewater distribution systems, construction of bridges and similar large structures, construction of light and commuter rail infrastructure, concrete and asphalt batch plant operations, and concrete crushing and aggregates operations.
It serves public sector customers, including county and municipal public works departments, regional transit and water authorities, port authorities, school districts, and municipal utility districts, as well as private customers primarily in Texas, Utah, Nevada, Arizona, and California. The company was formerly known as Oakhurst Company, Inc. and changed its name to Sterling Construction Company, Inc. in November 2001. Sterling Construction Company, Inc. was founded in 1954 and its headquarters is in Houston, Texas.
Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/16/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.