5 Low-Debt Mid-Cap Stocks Forecasted For Growth

by: ZetaKap

Strong growth projections is good news for a company, but not if they are already under water in terms of debt. It casts a shadow of doubt on the predicted growth and leads potential investors to question if the company plans to finance the next growth spurt with further debt. To find companies that stand on more solid ground we focused on mid caps. There is a generalized reduction in risk with companies of this size, yet the capacity for growth is still great. For our list today, we have companies that have minimal debt and have strong projected EPS growth rates for the coming year. These two traits create a healthy environment for growth to flourish at a manageable rate. Take a look at the mid cap stocks listed below to begin your own investigation.

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.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The one-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 mid-cap stocks. We then looked for businesses that operate with little to no debt (D/E Ratio<.1). We then looked for businesses with estimated high-growth, with one-year projected EPS growth above 25%. We did not screen out any sectors.

Do you think these mid-cap stocks have higher to rise? Use our screened list as a starting point for your own analysis.

1) Coeur d'Alene Mines Corporation (NYSE:CDE)

Sector Basic Materials
Industry Silver
Market Cap $2.62B
Beta 1.77

CDE stock chart

Key Metrics

Debt/Equity Ratio 0.06
1-Year Projected Earnings Per Share Growth Rate 58.39%
Short Interest 6.66%

Coeur d'Alene Mines Corporation, together with its subsidiaries, engages in the ownership, operation, exploration, and development of silver and gold mining properties primarily located in the United States, Mexico, Bolivia, Argentina, and Australia. Its properties include the San Bartolome silver mine in Bolivia; the Palmarejo silver-gold mine in Mexico; the Kensington gold mine in Alaska; and the Rochester silver-gold mine in Nevada. The company owns and operates the Martha silver-gold mine in Argentina, as well as owns a non-operating interest in a silver-base metal mine in Australia. Coeur d'Alene Mines Corporation was founded in 1928 and is based in Coeur d'Alene, Idaho.


Sector Services
Industry Business Services
Market Cap $2.01B
Beta 0.72

MMS stock chart

Key Metrics

Debt/Equity Ratio 0.00
1-Year Projected Earnings Per Share Growth Rate 28.70%
Short Interest 2.44%

MAXIMUS, Inc. provides business process outsourcing services to government health and human services agencies in the United States, Australia, Canada, and the United Kingdom. The company focuses on administering government-sponsored programs, such as Medicaid, the Children's Health Insurance Program, health care reform, welfare-to-work, Medicare, child support enforcement, and other government programs. The company was founded in 1975 and is based in Reston, Virginia.

3) Ctrip.com International Ltd. (NASDAQ:CTRP)

Sector Services
Industry Lodging
Market Cap $2.49B
Beta 1.59

CTRP stock chart

Key Metrics

Debt/Equity Ratio 0.06
1-Year Projected Earnings Per Share Growth Rate 25.68%
Short Interest 8.39%

Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, airline tickets, and packaged tours in the People's Republic of China. Ctrip.com International, Ltd. was founded in 1999 and is headquartered in Shanghai, the People's Republic of China.

4) NVR Inc. (NYSE:NVR)

Sector Industrial Goods
Industry Residential Construction
Market Cap $4.37B
Beta 0.91

NVR stock chart

Key Metrics

Debt/Equity Ratio 0.00
1-Year Projected Earnings Per Share Growth Rate 47.94%
Short Interest 4.73%

NVR, Inc. operates as a homebuilder in the United States. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the trade names of Ryan Homes, NVHomes, Fox Ridge Homes, and Rymarc Homes primarily to first-time homeowners and first-time move-up buyers. NVR, Inc. was founded in 1979 and is headquartered in Reston, Virginia.

5) Aspen Technology, Inc. (NASDAQ:AZPN)

Sector Technology
Industry Business Software & Services
Market Cap $2.40B
Beta 1.14

AZPN stock chart

Key Metrics

Debt/Equity Ratio 0.09
1-Year Projected Earnings Per Share Growth Rate 155.00%
Short Interest 3.84%

Aspen Technology, Inc. provides integrated process optimization software solutions to manage and optimize plant and process design, operational performance, and supply chain planning. The company designs and develops a suite of aspenONE software applications for use in the areas of engineering, manufacturing, and supply chain. Aspen Technology, Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/28/2012.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.