Top 20 Good Stocks With the Least Debt
Marvin's rules found 20 larger companies with low debt compared with equity and strong Overall scores. They span many sectors, from technology and insurance to gold, energy and real estate.
Debt matters because a company must pay interest and repay lenders in good times and bad. A company with little debt compared with its equity usually has more room to handle a slow year. This list looks for companies that combine low debt with strong Marvin scores.
Debt-to-equity compares what a company owes with the value owners have in the business. A lower ratio means less reliance on borrowing. Banks, insurers and real estate companies use money differently from other businesses, so their ratios are not always directly comparable with those of a chip maker or a builder.
Low debt is only one part of the picture. Some companies here have thin margins, modest returns, or missing figures, and the blurbs below point these out. Treat the list as a starting point for your own research, not a verdict on any company.
The list
How Marvin ranked these stocks
Marvin started with companies above a minimum size, then kept only those with debt no more than a small fraction of equity and an Overall score above a solid cutoff. The survivors are ranked by Overall score, highest first, with only a few companies allowed from any one sector so the list is not dominated by a single area. Marvin's scores are relative: each company is compared with other companies in its own industry today, so a high score means it looks strong against its industry peers, not against every stock.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). Companies with debt no more than 40% of equity and an Overall score of at least 60, highest Overall first; at most 3 per sector.
The stocks, one by one
American Integrity Insurance Group, Inc. AII
American Integrity Insurance Group, a property and casualty insurer, has an Overall score of 97 and revenue growth of 35.3%. Debt-to-equity is just 0.09, and return on equity is 23.8%. Caution: operating margin is not available, so profitability is only partly visible.
AngloGold Ashanti Plc AU
AngloGold Ashanti, a gold company, shows revenue growth of 70.8%, a gross margin of 49.2% and return on equity of 39.2%, with debt-to-equity at 0.28. Those figures suggest strong growth and returns with modest debt. Caution: free cash flow margin is missing, so cash generation can't be checked.
NVIDIA Corporation NVDA
NVIDIA, a semiconductor company, posts an operating margin of 65.2% and return on equity of 84.2%, with debt-to-equity of 0.17. That points to very high profitability with little debt. Caution: its revenue growth of 65.5% covers one fiscal year, and chip results can swing between years.
Sandisk Corporation SNDK
Sandisk, a computer hardware company, shows revenue growth of 175.3%, an operating margin of 61.2% and a free cash flow margin of 56.8%. Debt-to-equity is a tiny 0.01. Caution: growth that large is a single-year reading, and hardware demand can be uneven.
CareTrust REIT, Inc. CTRE
CareTrust REIT, a healthcare facilities property company, grew revenue by 60.8% and carries debt-to-equity of 0.27, which is low. Caution: return on equity is only 7.9%, which is modest, and margin figures are not available for this company.
Jack Henry & Associates, Inc. JKHY
Jack Henry, an information technology services company, has an operating margin of 25.0%, a free cash flow margin of 27.3% and debt-to-equity of just 0.04. Caution: revenue growth of 7.1% is modest, and its Opportunity score of 67 trails its Quality score.
Taboola.com Ltd. TBLA
Taboola, an internet content and information company, has debt-to-equity of 0.17 and revenue growth of 8.3%. Caution: margins are thin, with an operating margin of 6.5% and a gross margin of 29.7%, so there is little cushion if revenue slips.
Comfort Systems USA, Inc. FIX
Comfort Systems USA, an engineering and construction company, grew revenue by 29.5% and earns return on equity of 44.6%, with debt-to-equity of 0.11. Caution: its operating margin of 16.5% and gross margin of 25.7% are moderate, typical for contracting work.
JBT Marel Corporation JBTM
JBT Marel, an industrial machinery company, shows revenue growth of 121.3% and debt-to-equity of 0.38, which is low. Caution: return on equity is only 4.3%, margin figures are not available, and growth this big may not reflect a normal year.
Oscar Health, Inc. OSCR
Oscar Health, a healthcare plan company, shows revenue growth of 27.5%, return on equity of 26.8% and debt-to-equity of 0.21. Caution: its operating margin is only 3.9%, so profit per dollar of revenue is thin even with a free cash flow margin of 28.6%.
QuinStreet, Inc. QNST
QuinStreet, an advertising company, earns return on equity of 25.1% and grew revenue by 18.3%, with debt-to-equity of 0.24. Caution: margins are very thin, with a gross margin of 11.3% and an operating margin of 2.7%.
Slide Insurance Holdings, Inc. Common Stock SLDE
Slide Insurance Holdings, a property and casualty insurer, shows a free cash flow margin of not reported, return on equity of 46.5% and debt-to-equity of 0.03. That suggests strong cash generation with little debt. Caution: operating margin is not available, and revenue growth was 36.5%.
Tarsus Pharmaceuticals, Inc. TARS
Tarsus Pharmaceuticals, a biotechnology company, grew revenue by 146.7% and has debt-to-equity of 0.26. Caution: it is not yet consistently profitable on these figures, with an operating margin of -8.0% and return on equity of -13.4%, though free cash flow margin is 9.2%.
Terreno Realty Corporation TRNO
Terreno Realty, an industrial property company, grew revenue by 24.5% and carries debt-to-equity of 0.21, which is low. Caution: return on equity is a modest 8.8%, and margin figures are not available to confirm how profitable the business is.
Addus HomeCare Corporation ADUS
Addus HomeCare, a care facilities company, grew revenue by 23.2% and has debt-to-equity of 0.09, with a free cash flow margin of 10.5%. Caution: return on equity is modest at 9.2%, and its Opportunity score of 82 is well below its Overall score.
Brady Corporation BRC
Brady, a security and protection services company, has a gross margin of 51.7%, an operating margin of 15.9% and debt-to-equity of 0.06. Caution: revenue growth was a modest 9.8%, and its Opportunity score of 64 is much lower than its Overall score.
EQT Corporation EQT
EQT, an oil and gas producer, has an operating margin of 42.5%, a free cash flow margin of 39.4% and revenue growth of 63.9%, with debt-to-equity of 0.22. Caution: return on equity is 10.7%, and energy producers' results often follow commodity markets.
Atlantic Union Bankshares Corporation AUB
Atlantic Union Bankshares, a regional bank, has an Overall score of 95, a Quality score of 93 and debt-to-equity of 0.39. Caution: return on equity is 9.5%, growth and margin figures are missing, and bank debt ratios are not directly comparable with other industries.
Newmont Corporation NEM
Newmont, a gold company, grew revenue by 21.3% and shows a free cash flow margin of 37.8% and return on equity of 24.4%, with debt-to-equity of 0.14. Caution: operating and gross margin figures are not available, so profitability is only partly visible.
NPK International Inc. NPKI
NPK International, a construction materials company, has an operating margin of 17.3%, revenue growth of 27.4% and debt-to-equity of just 0.05. Caution: its free cash flow margin is only 9.2% and return on equity is 11.5%, and it has the lowest Overall score on this list.
Common questions
What does debt-to-equity mean?
It compares what a company owes with the value that belongs to its owners. A lower ratio means the company relies less on borrowing. What counts as normal differs by industry, and banks and insurers are structured differently from most other companies.
Does low debt make a stock safe?
No. Low debt gives a company more flexibility, but it does not protect against falling sales, thin margins or other business problems. Several companies here have weak spots, such as low margins or modest returns, which is why each blurb includes a caution.
Why do the scores differ between industries?
Marvin scores each company against other companies in its own industry, because typical margins, growth and debt levels vary widely between industries. A high score means a company looks strong compared with its industry peers today. It is not a prediction of future performance.
Keep reading
- Top 20 Stocks to Hold for the Long Term, Ranked by Marvin
- Top 20 Stocks for Beginners: Large, Profitable, Low-Debt
- Top 25 Quality Stocks Trading Well Below Their Highs
- Top 20 Companies With the Strongest Businesses
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.