5 Consumer Stocks With Analyst Confidence And Little Debt

by: ZetaKap

Lines of credit can be a helpful way to get out of a short-term financial crunch, but when a company leans on it too often, it may begin to owe more than the assets it is borrowing against. Companies that keep a close and careful eye on how and when they borrow, tend to not overextend. It is the prudent mindset that we searched for today when we looked for consumer stocks. All of the stocks we found have little long-term debt. In addition, they have been rated "Buy" or "Strong Buy" by industry analysts. We think you will enjoy looking at our findings as some of these names will be quite familiar.

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 with its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it with 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.

We first looked for consumer stocks. We then 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 analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We did not screen out any market caps.

Do you think these stocks hold value that has yet to be priced in? Use our list to help with your own analysis.

1) UFP Technologies Inc. (NASDAQ:UFPT)

Sector Consumer Goods
Industry Packaging & Containers
Market Cap $113.70M
Beta 1.71

UFPT stock chart

Key Metrics

Long-Term Debt/Equity Ratio 0.08
Analysts' Rating 1.30
Short Interest 3.15%

UFP Technologies, Inc. designs, manufactures, and markets engineered packaging solutions and engineered component products for medical, automotive, aerospace and defense, electronics, industrial, and consumer markets in the United States. It offers packaging solutions primarily using polyethylene, polyurethane, cross-linked polyethylene foams, and rigid plastics for packaging consumer goods, including light electronics, wine bottles, candles, and health and beauty products. The company's packaging products include foam inserts for protective shipping cases, molded foam enclosures for orthopedic implants, plastic trays for medical devices and components, and end-cap packs for computer and electronics. It also fabricates and molds component products made from cross-linked polyethylene foams, reticulated polyurethane foams, and other specialty materials, as well as engages in laminating fabrics and other materials to cross-linked polyethylene foams, polyurethane foams, and other substrates. The company's component products comprise automotive interior trim, medical device components, disposable wound care components, athletic padding, abrasive nail files and other beauty aids, air filtration, high-temperature insulation, and military uniform and gear components. In addition, it offers wine shipping solutions made from molded fiber under the Wine Packs name; tube and pipe insulation for clean room environments under the T-Tubes name; pharmaceutical bag protection system under the BioShell name; and sanitary solution for nail care services under the Pro-Sticks name. The company markets and sells its products through direct sales forces, independent manufacturer representatives, and distributors. The company was founded in 1963 and its headquarters is in Georgetown, Massachusetts.

2) Farmer Brothers Co. (NASDAQ:FARM)

Sector Consumer Goods
Industry Processed & Packaged Goods
Market Cap $150.75M
Beta 1.08

FARM stock chart

Key Metrics

Long-Term Debt/Equity Ratio 0.09
Analysts' Rating 2.00
Short Interest 4.58%

Farmer Bros. Co. engages in the manufacture, wholesale, and distribution of coffee, tea and culinary products. Its product line includes roasted coffee; liquid coffee; and coffee related products, such as coffee filters, sugar and creamers, assorted teas, cappuccino, cocoa, spices, gelatins and puddings, soup, gravy and sauce mixes, pancake and biscuit mixes, and jellies and preserves. The company distributes its products through direct and brokered sales to institutional food service establishments, including restaurants, hotels, casinos, hospitals, and food service providers, as well as retailers, such as convenience stores, coffee houses, general merchandisers, private label retailers, and grocery stores in the United States. Farmer Bros. Co. was founded in 1912 and its headquarters is in Torrance, California.

3) Skechers USA Inc. (NYSE:SKX)

Sector Consumer Goods
Industry Textile - Apparel Footwear & Accessories
Market Cap $1.11B
Beta 1.58

SKX stock chart

Key Metrics

Long-Term Debt/Equity Ratio 0.08
Analysts' Rating 2.40
Short Interest 12.82%

Skechers U.S.A., Inc. engages in the design, development, marketing, and distribution of footwear for men, women, and children in the United States and internationally. The company offers shoe and boot products for men and women and for young men and women under the Skechers USA brand name. It also offers footwear for joggers, city and off-road wear, athletic-inspired casuals, and sport sandals and boots under the Skechers Sport brand name; boots, shoes, and sneakers for infants, toddlers, boys, and girls under the Skechers Kids brand name; men's and women's casuals, field boots, hikers, and athletic shoes under the Skechers Work brand name; and sneakers for active females of various ages under the Skechers Active brand name. In addition, it provides fitness footwear under the Shape-ups by Skechers brand; ultra-lightweight sneakers under the Shape-ups Liv by Skechers brand; casuals and athletic-inspired sandals for 18 to 34 year-old women under Tone-ups by Skechers and Tone-ups Fitness brands; and technical footwear under the Skechers GOperform brand. The company sells its products through department and specialty stores, athletic and independent retailers, boutiques, and catalog and internet retailers, as well as through its e-commerce Website and retail stores. As of February 15, 2012, it operated 120 concept stores, 107 factory outlet stores, and 54 warehouse outlet stores in the United States; and 33 concept stores and 16 factory outlets internationally. The company was founded in 1992 and its headquarters is in Manhattan Beach, California.

4) Fossil, Inc. (NASDAQ:FOSL)

Sector Consumer Goods
Industry Recreational Goods, Other
Market Cap $5.34B
Beta 1.86

FOSL stock chart

Key Metrics

Long-Term Debt/Equity Ratio 0.09
Analysts' Rating 2.30
Short Interest 7.37%

Fossil, Inc. designs, develops, markets, and distributes consumer fashion accessories worldwide. It offers watches under its proprietary brands, such as FOSSIL, MICHELE, RELIC, and ZODIAC; and under the licensed brand names, including ADIDAS, ARMANI EXCHANGE, BURBERRY, DIESEL, DKNY, EMPORIO ARMANI, MARC BY MARC JACOBS, and MICHAEL KORS. The company designs, markets, and arranges for the manufacture of watches and accessories on behalf of mass market retailers, companies, and organizations as private label products or as premium and incentive items for use in various corporate events. It also provides various fashion accessories for men and women, including handbags, belts, small leather goods, jewelry, and sunglasses through department stores and specialty retail stores, as well as through its own retail stores, e-commerce sites, and catalogs; and soft accessories, such as hats, gloves, and scarves. The company offers jewelry under EMPORIO ARMANI, DIESEL, DKNY, and MICHAEL KORS brands; and other fashion accessories under FOSSIL and RELIC brands. In addition, it provides clothing for men and women; shoes for men and women under the FOSSIL and RELIC brands. The company offers its products through its retail stores, e-commerce sites, and catalogs, as well as through distributors, department stores, specialty retail stores, specialty watch and jewelry stores, and mass market stores. As of December 31, 2011, it owned and operated 123 retail stores and 74 outlet stores in the United States; and 156 accessory retail stores, 11 multi-brand stores, 4 clothing stores, and 30 outlet stores internationally. The company was founded in 1984 and is headquartered in Richardson, Texas.

5) Companhia de Bebidas Das Americas (AMBEV) (ABV)

Sector Consumer Goods
Industry Beverages - Brewers
Market Cap $117.25B
Beta 0.95

ABV stock chart

Key Metrics

Long-Term Debt/Equity Ratio 0.08
Analysts' Rating 2.50
Short Interest 1.08%

Companhia de Bebidas das Americas AmBev engages in the production, distribution, and sale of beer, draft beer, malt, carbonated soft drinks, and other non-alcoholic and non-carbonated products in the Americas. It also sells bottled water, isotonics, and ready-to-drink teas. The company primarily offers its products under the Skol, Brahma, and Antarctica brand names. Companhia de Bebidas das Americas has a licensing agreement with Anheuser-Busch, Inc. to produce, bottle, sell, and distribute Budweiser products in Canada. It distributes its products through third-party distributors and direct distribution centers. The company was founded in 1888 and its headquarters is in Sao Paulo, Brazil. Companhia de Bebidas das Americas AmBev is a subsidiary of Interbrew International B.V.

Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/27/2012.

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.