3 Healthcare Stocks With Minimal Debt, Predicted For Growth

Includes: BMTI, CPIX, GNMK
by: ZetaKap

While many investors find their interest piqued when they learn about companies that are projected for growth, their curiosity will certainly wane if those companies have unhealthy debt ratios. By its nature, debt multiplies if left unchecked. When companies use debt cautiously and vigilantly prevent over use, they have the long-term well being of the company at the forefront. With this in mind, we looked for healthcare companies with projected EPS growth projections above 25% for the next five years that appear to be in good condition in terms of their debt management. Look below to review the short list of healthcare stocks to learn more about their potential for growth.

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 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.

We first looked for healthcare stocks. We then screened for businesses that operate with little to no debt (D/E Ratio<.1). We then looked for companies that have expected earnings per share growth of more than 25 percent for the next five years (5-year projected EPS Growth Rate>25%). 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) GenMark Diagnostics, Inc. (NASDAQ:GNMK)

Sector Healthcare
Industry Medical Appliances & Equipment
Market Cap $281.15M
Beta -

GNMK stock chart

Key Metrics

Debt/Equity Ratio 0.02
5-Year Projected Earnings Per Share Growth Rate 30.00%
Short Interest 1.21%

GenMark Diagnostics, Inc., a molecular diagnostics company, focuses on the development and commercialization of molecular diagnostic testing systems based on its proprietary eSensor detection technology in the United States. The company develops XT-8 system, an automated molecular diagnostic system consisting of a compact bench-top workstation and self-contained disposable test cartridges enabling reference laboratories and hospitals to perform a range of molecular diagnostic tests. Genmark Diagnostics, Inc. has its headquarters in Carlsbad, California.

2) Cumberland Pharmaceuticals, Inc. (NASDAQ:CPIX)

Sector Healthcare
Industry Drug Manufacturers - Other
Market Cap $120.87M
Beta -

CPIX stock chart

Key Metrics

Debt/Equity Ratio 0.05
5-Year Projected Earnings Per Share Growth Rate 30.00%
Short Interest 11.82%

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, engages in the acquisition, development, and commercialization of branded prescription products for the hospital acute care and gastroenterology markets primarily in the United States. The company's principal products include Acetadote, an intravenous formulation of N-acetylcysteine indicated for the treatment of acetaminophen poisoning; Caldolor, an intravenous formulation of ibuprofen for the treatment of pain and fever; and Kristalose, a prescription laxative administered orally for the treatment of constipation. Cumberland Pharmaceuticals, Inc. was incorporated in 1999 and its headquarters is in Nashville, Tennessee.

3) BioMimetic Therapeutics Inc. (NASDAQ:BMTI)

Sector Healthcare
Industry Medical Instruments & Supplies
Market Cap $106.67M
Beta 0.93

BMTI stock chart

Key Metrics

Debt/Equity Ratio 0.00
5-Year Projected Earnings Per Share Growth Rate 35.00%
Short Interest 0.97%

BioMimetic Therapeutics, Inc., a biotechnology company, engages in the development and commercialization of regenerative protein therapeutic products primarily used for bone and tissue regeneration, repair and healing of musculoskeletal injuries, and conditions affecting bones, tendons, ligaments, and cartilage. The company was formerly known as BioMimetic Pharmaceuticals, Inc. and changed its name to BioMimetic Therapeutics, Inc. in July 2005. BioMimetic Therapeutics, Inc. was founded in 1999 and its headquarters is in Franklin, Tennessee.

Company profiles sourced from Google Finance and Yahoo Finance. Financial data sourced from Finviz on 10/24/2012.

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.