Tuesday, May 1, 2012

4 Cheap Industrial Companies That Can Manage Debt


Interested in industrial stocks? In search of companies that can manage their debt well? Looking for undervalued stocks? For ideas on where to look, we ran a screen you may be interested in.The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble.The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last four quarters is used to derive this number. A firm that has a high P/E ratio generally indicates that investors have high expectations of the firm relative to future earnings growth. By the opposite token, investors generally have
... Read the rest at SeekingAlpha.com

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