3 Cash-Hoarding Small Caps Pulling In Substantial Profits

Small companies can grow over time through smart investments, acquisitions, or heavy investment in R & D. Having cash on hand allows that to happen. Today we focus on small cap companies that have built up strong cash reserves, backed by their track records of profitability. We think you'll find our list pretty interesting.EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.Return on Equity [ROE] is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage.
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