Top 15 Industrials Stocks With Low Debt
Marvin found 15 Industrials stocks that keep debt at no more than half of shareholder equity and still earn strong Overall scores. Brady Corporation has the lowest debt ratio of the group, and General Dynamics has the highest Overall score.
Debt matters because a company with less of it has fewer fixed payments to cover when business slows. This list looks at Industrials companies, a broad sector that covers makers of equipment and tools, builders, defense firms, distributors and service providers, where debt levels vary a lot.
The 15 stocks below all keep debt at no more than half of equity, measured by the debt-to-equity ratio. They are ordered by Marvin's Overall score, not by who has the least debt, so a company higher up the list can carry a little more debt than one lower down. Each write-up shows the actual ratio.
Low debt is only one part of a company's picture. Check growth, margins and cash generation too, and note that some figures are missing for certain companies. The cautions in each write-up point out the weaker spots.
The list
How Marvin ranked these stocks
Marvin started with Industrials companies above a minimum size, then kept only those with debt no more than half of equity and an Overall score of at least a set floor, with at most four stocks from any one industry. They are ranked with the highest Overall score first. Marvin's scores are relative: each company is compared with others in its own industry, so a score says how it stands against industry peers today, not against every company in the sector.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Industrials sector, highest Overall score first, among companies with debt no more than half of equity and an Overall score of at least 55; at most 4 per industry.
The stocks, one by one
General Dynamics Corporation GD
General Dynamics pairs a top Overall score of 96 with a modest debt-to-equity ratio of 0.38. Revenue grew 10.1% and operating margin is 10.2%. The caution: that operating margin is only moderate, and gross margin is not available for this company.
Comfort Systems USA, Inc. FIX
Comfort Systems USA carries very little debt, with a debt-to-equity ratio of 0.11, and posted revenue growth of 29.5% and return on equity of 44.6%. The caution: gross margin of 25.7% is only moderate, so profit rests on volume and cost control.
Kennametal Inc. KMT
Kennametal has a debt-to-equity ratio of 0.47 and a solid operating margin of 20.1%, with revenue growth of 19.8%. The caution: its free cash flow margin is -3.4%, meaning it generated less cash than it spent last year, and its quality score is 74.
JBT Marel Corporation JBTM
JBT Marel has a low debt-to-equity ratio of 0.38 and reported revenue growth of 121.3%, an unusually large jump worth treating carefully. The caution: operating margin of 7.3% and return on equity of 4.3% are low, and free cash flow margin is not available.
AMETEK, Inc. AME
AMETEK combines strong margins, with operating margin of 25.9% and free cash flow margin of 23.2%, with low debt at 0.21 times equity. Its quality score is 97. The caution: revenue growth of 6.6% is modest, and its opportunity score is 57.
Brady Corporation BRC
Brady has the lowest debt-to-equity ratio in this list, 0.06, along with a gross margin of 51.7% and an operating margin of 15.9%. The caution: revenue growth of 9.8% is modest, and its opportunity score of 64 is middling next to its quality score.
Snap-on Incorporated SNA
Snap-on shows strong profitability, with an operating margin of 25.4% and a free cash flow margin of 21.0%, plus a quality score of 97 and debt at 0.22 times equity. The caution: revenue growth was just 0.9%, nearly flat, and gross margin is not available.
Worthington Industries, Inc. WOR
Worthington Industries grew revenue 19.7% and turned 13.8% of sales into free cash flow, with a debt-to-equity ratio of 0.33. The caution: its operating margin of 5.6% is thin, leaving less cushion if costs rise.
Mueller Water Products, Inc. MWA
Mueller Water Products has an operating margin of 19.4%, return on equity of 19.8% and a debt-to-equity ratio of 0.40, a healthy mix of profit and low debt. The caution: revenue growth of 8.7% is modest, so expansion has been steady rather than fast.
Schneider National, Inc. SNDR
Schneider National keeps debt low, with a debt-to-equity ratio of 0.13, and grew revenue 7.3%. The caution: profitability is thin, with an operating margin of 3.0% and return on equity of 3.6%, and gross margin is not available.
Tutor Perini Corporation TPC
Tutor Perini grew revenue 28.1% and holds debt at 0.37 times equity, with a free cash flow margin of 10.4%. The caution: margins are slim, with an operating margin of 4.5% and a gross margin of 11.5%, leaving little room for setbacks.
Applied Industrial Technologies, Inc. AIT
Applied Industrial Technologies has a quality score of 95, return on equity of 22.3% and a low debt-to-equity ratio of 0.26. The caution: revenue growth of 8.8% is modest, and its opportunity score of 63 is lower than others here.
Federal Signal Corporation FSS
Federal Signal grew revenue 17.1%, earns an operating margin of 16.2% and keeps debt at 0.32 times equity. The caution: its opportunity score of 75 trails its quality score of 95, so it stands out less on that measure.
Korn Ferry KFY
Korn Ferry has a quality score of 90, an opportunity score of 94 and a debt-to-equity ratio of 0.30, with an operating margin of 12.9%. The caution: revenue growth of 6.4% is modest, and gross margin is not available.
Everus Construction Group, Inc. ECG
Everus Construction Group grew revenue 31.5% and earned return on equity of 32.9%. The cautions: its debt-to-equity ratio of 0.47 is the highest here, though within the cutoff, its operating margin of 7.8% is thin, and its quality score of 63 is the list's lowest.
Common questions
What does the debt-to-equity ratio tell me?
It compares what a company owes with the value of the shareholders' stake. A lower ratio means the business relies less on borrowed money. Every stock here has a ratio of no more than half, which Marvin treats as low debt.
Does low debt mean a company is a safe choice?
No. Low debt gives a company more room to handle weak periods, but it does not guarantee good results. Margins, cash flow and growth matter too, which is why each write-up includes a caution about a weaker figure.
Why isn't the company with the least debt ranked first?
Marvin ranks these stocks by Overall score, which reflects how a company compares with others in its industry. The debt limit only decides who qualifies. Brady Corporation has the lowest ratio in the list, but other companies have higher Overall scores.
Keep reading
- Top 15 Industrials Companies With the Strongest Businesses
- Top 15 Industrials Stocks Ranked by Marvin Scores
- Top 15 Industrials Stocks Ranked by Marvin Opportunity Score
- Top 15 Fastest-Growing Profitable Industrials Companies
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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.