Top 15 Technology Stocks With Low Debt
Marvin found 15 Technology stocks whose debt is no more than half of their equity and whose Overall scores are strong. NVIDIA, Microsoft and Sandisk lead the list, which is ordered by Overall score rather than by lowest debt.
Debt-to-equity compares what a company owes with what its shareholders own. A lower number means the business leans less on borrowed money. Every stock below has a ratio of no more than half, and several are far under that.
Marvin ranks this list by Overall score, not by who has the least debt. A stock with a slightly higher debt ratio can rank above one with almost none if its profitability and growth compare better with its industry. Each blurb shows the debt ratio next to other figures so you can see the full picture.
Low debt is one useful trait, not a guarantee of anything. Some of these companies have thin margins or modest growth, and a few figures are missing. Treat the list as a starting point for your own research.
The list
How Marvin ranked these stocks
Marvin started with companies above a minimum size and kept only those in the Technology sector. It then required debt of no more than half of equity and an Overall score above a solid minimum, and allowed at most four companies from any one industry. The survivors are ordered by Overall score, highest first. Marvin's scores are relative: each company is compared with others in its own industry, so a score describes how it stacks up against its peers today, not against all stocks.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Technology 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
NVIDIA Corporation NVDA
NVIDIA, a chip maker, pairs a very high operating margin of 65.2% with revenue growth of 65.5% last fiscal year and a low debt-to-equity ratio of 0.17. Caution: one year of growth is a short record, and semiconductor results can swing widely over time.
Microsoft Corporation MSFT
Microsoft shows an operating margin of 46.8%, revenue growth of 17.8% and debt-to-equity of 0.29, meaning strong profits, steady expansion and modest borrowing. Caution: its growth is slower than the fastest names here, and its Opportunity score of 81 trails its Quality score of 97.
Sandisk Corporation SNDK
Sandisk has almost no debt, with a ratio of 0.01, plus a free cash flow margin of 56.8% and growth of 175.3%. Those figures point to strong cash generation. Caution: growth that large in one year is unusual and says little about what a typical year looks like.
Cisco Systems, Inc. CSCO
Cisco, a networking equipment maker, has an operating margin of 24.3%, a free cash flow margin of 20.2% and debt-to-equity of 0.49. Caution: that is the highest debt ratio on this list, and its growth of 11.8% is moderate rather than fast.
Jack Henry & Associates, Inc. JKHY
Jack Henry has very little debt, at 0.04, and converts a healthy 27.3% of revenue into free cash flow. Caution: growth of 7.1% is modest, and its gross margin of 43.7% is lower than most companies on this list.
Micron Technology, Inc. MU
Micron stands out with an operating margin of 74.6%, a gross margin of 80.7% and a debt ratio of only 0.04. Caution: growth of 256.3% in the last fiscal year is exceptional, and memory chip results can be uneven from one year to the next.
Remitly Global, Inc. RELY
Remitly, a money-transfer technology company, grew revenue 29.4% with debt-to-equity of just 0.03 and a free cash flow margin of 21.4%. Caution: its operating margin of 9.5% is thin next to others here, and gross margin data is not available.
Zeta Global Holdings Corp. ZETA
Zeta Global grew revenue 29.7% and generated a free cash flow margin of 14.3%, with debt-to-equity of 0.24. Caution: its operating margin of 1.6% is very thin, and return on equity of -0.2% shows it is not yet earning a profit on shareholders' money.
ASML Holding N.V. ASML
ASML, which supplies the chip industry, has an operating margin of 34.6%, return on equity of 49.0% and debt-to-equity of 0.22. Caution: revenue growth of 15.6% is moderate compared with the fastest-growing semiconductor names on this list.
ESCO Technologies Inc. ESE
ESCO Technologies has a low debt ratio of 0.09, revenue growth of 19.2% and a free cash flow margin of 16.1%, a decent mix of growth and cash generation. Caution: its operating margin is not available, so profitability is harder to judge fully.
Western Digital Corporation WDC
Western Digital has revenue growth of 35.7%, an operating margin of 34.5% and debt-to-equity of 0.13. Caution: its return on equity of 106.3% is unusually high, which can happen when a company's equity base is small, so read it carefully.
Lam Research Corporation LRCX
Lam Research shows an operating margin of 35.3% and growth of 26.0%, with a return on equity of 58.3%. Caution: its debt-to-equity of 0.33 is higher than many others on this list, though still within Marvin's limit.
Fortinet, Inc. FTNT
Fortinet, a cybersecurity company, has a gross margin of 80.2% and a free cash flow margin of 42.6%, with debt-to-equity of 0.36. Caution: growth of 14.2% is modest, and its return on equity of 136.7% is extremely high, possibly due to a small equity base.
IBEX Limited IBEX
IBEX, an IT services provider, grew revenue 15.4% and has return on equity of 27.2% with debt-to-equity of 0.38. Caution: its operating margin of 8.5% and free cash flow margin of 4.8% are thin, and gross margin data is not available.
Cognizant Technology Solutions Corporation CTSH
Cognizant has a low debt ratio of 0.07, an operating margin of 15.8% and a free cash flow margin of 11.5%, a steady if unspectacular profile. Caution: revenue growth of 7.0% is the slowest here, and gross margin data is not available.
Common questions
What does debt-to-equity mean?
It divides a company's debt by its shareholders' equity. A ratio near zero means the company borrows very little compared with what its owners have invested. A ratio of one means debt and equity are equal. This list only includes companies at no more than half.
Does low debt mean a stock is safe?
No. Low debt reduces one kind of risk, because there is less borrowing to repay. A company can still have falling sales, thin margins or other problems. That is why each blurb also shows profitability and growth figures and a caution.
Why are these stocks ranked by Overall score instead of lowest debt?
Marvin first filters for companies with modest debt, then ranks the survivors by Overall score. The score compares each company with others in its own industry. A company with a slightly higher debt ratio can therefore rank above one with almost no debt.
Keep reading
- Top 15 Technology Stocks by Marvin Opportunity Score
- Top 15 Technology Stocks Right Now, Ranked by Marvin Scores
- Top 15 Technology Companies With the Strongest Businesses
- Top 15 Semiconductor Stocks Ranked by Marvin Scores
Free account. Build your own AI-made watchlists, follow Marvin's scores and share lists.
Create a free account
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.