Thursday, November 13, 2008

No Debt Low Price to Cash Flow Stocks

If you are looking for stocks that are 'safe', the first thing that most investors, and traders, look at is how much debt the company has. The debt free get a lot of focus. One of the other metrics worth looking at are stocks with a low Price to Cash Flow ratio.

Why is cash flow more important than earnings or net income? It gives a more realistic idea about the amount of actual funds that are coming in to the company. has discovered seven debt free stocks with Price to Cash Flows below 5 and PE ratios below 9. They all have market caps over $500 million.

One of the stocks is Take-Two Interactive Software Inc. (TTWO), with a Price to Cash Flow ratio of 3.1 and a PE ratio of 8. This publisher and distributor of interactive software games was upgraded a couple months ago by Cowen & Co. The stock has a PE ratio of 0.45.

Another stock without any debt and a low Price to Cash Flow ratio, of 3.98, is Garmin Ltd. (GRMN), The maker and marketer of global positioning system products. They just reported lower third quarter profits. The stock has a PE of 5, a PEG of 0.38, and pays a yield of 4%.

The rest of the stocks can be found in a downloadable Excel database at, and can be sorted and added to.

If you like high yield stocks, check out Yields Over 9% on Quarterly Dividend Stocks.

Author does not own any of the above.


No comments: