Low Debt Companies

Q: What is a debt-to-equity ratio?

The debt-to-equity (D/E) ratio divides a company's total debt by total shareholder equity. A D/E of 0.5 means the company has $0.50 of debt for every $1.00 of equity. Lower ratios indicate less financial leverage and greater balance sheet strength. This list features companies with D/E below 0.3, among the least leveraged in the market. The metric helps investors assess financial risk — companies with less debt have lower bankruptcy risk and more flexibility.

Q: Why is low debt important for stocks?

Low debt matters because it reduces financial risk and interest expense. Companies with less debt are less vulnerable to rising interest rates, economic downturns, and credit market disruptions. They have more cash available for dividends, buybacks, and growth investments. During the 2008 financial crisis, many overleveraged companies went bankrupt while low-debt peers survived and acquired assets cheaply. Low debt also gives management strategic flexibility to act on opportunities.

Q: What is a good debt-to-equity ratio?

It varies by industry. Technology companies often operate with D/E below 0.5 because their businesses require little capital. Banks and utilities typically have D/E above 1.0 because leverage is inherent to their business models. Generally, a D/E below 0.5 is considered conservative, 0.5-1.0 is moderate, and above 1.0 is aggressive. The threshold of 0.3 used in this list identifies the most conservatively financed companies across all sectors.

Q: Do low-debt stocks outperform during recessions?

Research shows that companies with strong balance sheets tend to outperform during economic downturns. They face lower risk of financial distress, maintain access to capital, and can acquire distressed competitors cheaply. During the 2020 COVID crash and the 2022 rate hiking cycle, low-debt companies experienced smaller drawdowns on average. However, during strong economic expansions, more leveraged companies can outperform because debt amplifies returns on equity.

Q: What sectors typically have low debt?

Technology, healthcare, and some consumer sectors frequently have the lowest debt levels because their asset-light business models generate cash without requiring heavy borrowing. Software companies are especially common on low-debt lists. Sectors that naturally carry higher debt include utilities, real estate (REITs), banks, and capital-intensive industries like airlines and telecommunications. Some companies in these sectors maintain low debt by choice as a competitive advantage.

Q: Can too little debt be bad?

In theory, yes. Some financial theory suggests that a moderate level of debt is optimal because interest payments are tax-deductible, lowering the effective cost of capital. A company with zero debt may be leaving this tax advantage unused. However, in practice, the benefits of financial flexibility and resilience during downturns often outweigh the tax shield from debt. Companies like Alphabet have operated with minimal debt while still delivering exceptional shareholder returns.

Q: What is financial leverage?

Financial leverage refers to the use of borrowed money to amplify returns. A company that borrows at 5% interest and earns 15% on that capital pockets the 10% spread. However, leverage works both ways — during downturns, the fixed interest payments remain even as earnings decline, potentially causing financial distress. Low-leverage companies sacrifice some potential upside for greater stability and lower risk of bankruptcy. The debt-to-equity ratio is the most common measure of financial leverage.

Fortress balance sheets: companies with debt-to-equity under 0.3. Built to weather recessions and rising rates. $1B+ market cap.

200 stocks Updated Sep 22, 2026

$3.29T Total Market Cap

— Avg P/E Ratio

$105.67 Avg Share Price

+0.00% Avg Daily Change

Low debt companies maintain debt-to-equity ratios below 0.3, meaning their total debt is less than 30% of shareholder equity. These "fortress balance sheets" provide financial flexibility and resilience during economic downturns, rising interest rate environments, and periods of market stress when over-leveraged competitors struggle.

Companies with minimal debt can fund operations and growth from internal cash flow rather than relying on credit markets. This independence becomes especially valuable during recessions or credit crunches when borrowing costs spike and lenders tighten standards. Low-debt companies also avoid the interest expense burden that erodes earnings at heavily leveraged firms.

This list screens for companies with debt-to-equity ratios under 0.3 and market caps above $1 billion. It includes the D/E ratio, total debt, and equity values from the most recent annual reports. Many technology companies appear on this list because their capital-light business models require minimal borrowing. Data is updated weekly.

#	Symbol	Name	Price	D/E Ratio	Total Debt	Equity	Market Cap
1	QXO	Qxo Inc	$12.78	0.00	925.7K	9.26B	11.69B
2	GMED	Globus Medical Inc - A	$75.19	0.00	1.00M	5.01B	10.01B
3	GMED	Globus Medical Inc - A	$75.19	0.00	1.00M	5.01B	10.01B
4	XPEL	Xpel Inc	$45.99	0.00	130.1K	650.54M	1.30B
5	XPEL	Xpel Inc	$45.99	0.00	130.1K	650.54M	1.30B
6	CPRT	Copart Inc	$28.80	0.00	4.06M	13.54B	27.08B
7	CPRT	Copart Inc	$28.80	0.00	4.06M	13.54B	27.08B
8	PRLB	Proto Labs Inc	$87.75	0.00	409.6K	1.02B	2.05B
9	PRLB	Proto Labs Inc	$87.75	0.00	409.6K	1.02B	2.05B
10	ELE	Elemental Royalty Corp	$21.30	0.00	581.9K	969.91M	1.94B
11	ELE	Elemental Royalty Corp	$21.30	0.00	581.9K	969.91M	1.94B
12	TFPM	Triple Flag Precious Met	$33.73	0.00	3.32M	4.74B	9.48B
13	TFPM	Triple Flag Precious Met	$33.73	0.00	3.32M	4.74B	9.48B
14	SOUN	Soundhound Ai Inc-A	$6.12	0.00	925.2K	1.32B	2.65B
15	SOUN	Soundhound Ai Inc-A	$6.12	0.00	925.2K	1.32B	2.65B
16	UROY	Uranium Royalty Corp	$4.56	0.00	805.0K	1.15B	2.30B
17	ANDG	Andersen Group Inc - A	$54.99	0.00	2.20M	3.14B	6.29B
18	OLLI	Ollie'S Bargain Outlet Holdi	$82.48	0.00	1.81M	2.26B	4.53B
19	OLLI	Ollie'S Bargain Outlet Holdi	$82.48	0.00	1.81M	2.26B	4.53B
20	BRBR	Bellring Brands Inc	$8.94	0.00	419.7K	524.58M	1.05B
21	BRBR	Bellring Brands Inc	$8.94	0.00	419.7K	524.58M	1.05B
22	WPM	Wheaton Precious Metals Corp	$153.81	0.00	43.77M	48.63B	97.35B
23	WPM	Wheaton Precious Metals Corp	$153.81	0.00	43.77M	48.63B	97.35B
24	AZTA	Azenta Inc	$33.24	0.00	662.4K	735.98M	1.47B
25	AZTA	Azenta Inc	$33.24	0.00	662.4K	735.98M	1.47B
26	NMAX	Newsmax Inc	$11.10	0.00	808.9K	674.06M	1.35B
27	NMAX	Newsmax Inc	$11.10	0.00	808.9K	674.06M	1.35B
28	SAM	Boston Beer Company Inc-A	$171.57	0.00	1.15M	885.58M	1.77B
29	SAM	Boston Beer Company Inc-A	$171.57	0.00	1.15M	885.58M	1.77B
30	IOVA	Iovance Biotherapeutics Inc	$10.29	0.00	3.17M	2.27B	4.54B
31	GNTX	Gentex Corp	$22.30	0.00	3.54M	2.36B	4.72B
32	GNTX	Gentex Corp	$22.30	0.00	3.54M	2.36B	4.72B
33	ARM	Arm Holdings plc	$333.20	0.00	126.72M	84.48B	169.22B
34	ARM	Arm Holdings plc	$333.20	0.00	126.72M	84.48B	169.22B
35	EME	Emcor Group Inc	$756.50	0.00	27.30M	16.06B	32.17B
36	EME	Emcor Group Inc	$756.50	0.00	27.30M	16.06B	32.17B
37	TXRH	Texas Roadhouse Inc	$166.12	0.00	9.93M	5.52B	11.05B
38	TXRH	Texas Roadhouse Inc	$166.12	0.00	9.93M	5.52B	11.05B
39	NVTS	Navitas Semiconductor Corp	$11.43	0.00	2.61M	1.45B	2.91B
40	NVTS	Navitas Semiconductor Corp	$11.43	0.00	2.61M	1.45B	2.91B
41	MIAX	Miami International Holdings	$36.76	0.00	3.56M	1.87B	3.75B
42	NBIS	Nebius Group Nv	$236.12	0.00	20.56M	10.82B	59.75B
43	MIAX	Miami International Holdings	$36.76	0.00	3.56M	1.87B	3.75B
44	TROW	T Rowe Price Group Inc	$104.17	0.00	21.89M	10.95B	21.94B
45	TROW	T Rowe Price Group Inc	$104.17	0.00	21.89M	10.95B	21.94B
46	JJSF	J & J Snack Foods Corp	$77.97	0.00	1.49M	743.35M	1.49B
47	JJSF	J & J Snack Foods Corp	$77.97	0.00	1.49M	743.35M	1.49B
48	KYMR	Kymera Therapeutics Inc	$122.06	0.00	10.32M	4.92B	9.85B
49	KYMR	Kymera Therapeutics Inc	$122.06	0.00	10.32M	4.92B	9.85B
50	LZB	La-Z-Boy Inc	$29.84	0.00	1.25M	595.34M	1.19B
51	LZB	La-Z-Boy Inc	$29.84	0.00	1.25M	595.34M	1.19B
52	GCT	Gigacloud Technology Inc - A	$53.72	0.00	2.00M	954.09M	1.91B
53	GCT	Gigacloud Technology Inc - A	$53.72	0.00	2.00M	954.09M	1.91B
54	OR	Or Royalties Inc	$37.55	0.00	16.82M	4.81B	9.65B
55	OR	Or Royalties Inc	$37.55	0.00	16.82M	4.81B	9.65B
56	EWBC	East West Bancorp Inc	$125.54	0.00	35.11M	8.78B	17.63B
57	EWBC	East West Bancorp Inc	$125.54	0.00	35.11M	8.78B	17.63B
58	CGON	Cg Oncology Inc	$77.74	0.00	13.16M	3.29B	6.61B
59	ABSI	Absci Corp	$10.86	0.01	3.76M	817.41M	1.64B
60	ABSI	Absci Corp	$10.86	0.01	3.76M	817.41M	1.64B
61	REX	Rex American Resources Corp	$43.65	0.01	3.69M	709.42M	1.43B
62	REX	Rex American Resources Corp	$43.65	0.01	3.69M	709.42M	1.43B
63	GFR	Greenfire Resources Ltd	$6.30	0.01	4.14M	796.42M	1.60B
64	USAR	Usa Rare Earth Inc	$16.99	0.01	15.89M	2.94B	5.92B
65	WSO	Watsco Inc	$325.58	0.01	36.70M	6.44B	12.95B
66	WSO	Watsco Inc	$325.58	0.01	36.70M	6.44B	12.95B
67	VCEL	Vericel Corp	$39.55	0.01	5.78M	1.01B	2.04B
68	VCEL	Vericel Corp	$39.55	0.01	5.78M	1.01B	2.04B
69	VRTX	Vertex Pharmaceuticals Inc	$514.99	0.01	389.59M	64.93B	130.64B
70	VRTX	Vertex Pharmaceuticals Inc	$514.99	0.01	389.59M	64.93B	130.64B
71	CLBK	Columbia Financial Inc	$11.68	0.01	9.36M	1.54B	3.09B
72	CLBK	Columbia Financial Inc	$11.68	0.01	9.36M	1.54B	3.09B
73	IBRX	Immunitybio Inc	$9.29	0.01	28.28M	4.29B	8.63B
74	INCY	Incyte Corp	$126.93	0.01	86.08M	12.85B	25.87B
75	INCY	Incyte Corp	$126.93	0.01	86.08M	12.85B	25.87B
76	CVCO	Cavco Industries Inc	$558.39	0.01	13.72M	2.05B	4.12B
77	CVCO	Cavco Industries Inc	$558.39	0.01	13.72M	2.05B	4.12B
78	GIII	G-Iii Apparel Group Ltd	$28.32	0.01	3.98M	593.72M	1.20B
79	GIII	G-Iii Apparel Group Ltd	$28.32	0.01	3.98M	593.72M	1.20B
80	EPAM	Epam Systems Inc	$111.54	0.01	20.00M	2.94B	5.92B
81	EPAM	Epam Systems Inc	$111.54	0.01	20.00M	2.94B	5.92B
82	ROG	Rogers Corp	$131.43	0.01	8.52M	1.15B	2.32B
83	ROG	Rogers Corp	$131.43	0.01	8.52M	1.15B	2.32B
84	AMR	Alpha Metallurgical Resource	$174.22	0.01	10.10M	1.16B	2.34B
85	AMR	Alpha Metallurgical Resource	$174.22	0.01	10.10M	1.16B	2.34B
86	TR	Tootsie Roll Inds	$37.26	0.01	12.77M	1.42B	2.86B
87	TR	Tootsie Roll Inds	$37.26	0.01	12.77M	1.42B	2.86B
88	CGAU	Centerra Gold Inc	$23.47	0.01	27.02M	2.97B	5.99B
89	CGAU	Centerra Gold Inc	$23.47	0.01	27.02M	2.97B	5.99B
90	ODFL	Old Dominion Freight Line	$177.31	0.01	165.27M	17.77B	35.87B
91	ODFL	Old Dominion Freight Line	$177.31	0.01	165.27M	17.77B	35.87B
92	GGG	Graco Inc	$77.64	0.01	57.15M	6.14B	12.40B
93	GGG	Graco Inc	$77.64	0.01	57.15M	6.14B	12.40B
94	TH	Target Hospitality Corp	$21.45	0.01	8.88M	915.13M	1.85B
95	TH	Target Hospitality Corp	$21.45	0.01	8.88M	915.13M	1.85B
96	MDB	Mongodb Inc	$427.69	0.01	153.05M	15.01B	30.32B
97	MDB	Mongodb Inc	$427.69	0.01	153.05M	15.01B	30.32B
98	BOOT	Boot Barn Holdings Inc	$129.28	0.01	18.92M	1.86B	3.75B
99	BOOT	Boot Barn Holdings Inc	$129.28	0.01	18.92M	1.86B	3.75B
100	BRC	Brady Corporation - Cl A	$83.39	0.01	21.74M	1.98B	4.00B

Frequently Asked Questions

What is a debt-to-equity ratio?

The debt-to-equity (D/E) ratio divides a company's total debt by total shareholder equity. A D/E of 0.5 means the company has $0.50 of debt for every $1.00 of equity. Lower ratios indicate less financial leverage and greater balance sheet strength. This list features companies with D/E below 0.3, among the least leveraged in the market. The metric helps investors assess financial risk — companies with less debt have lower bankruptcy risk and more flexibility.

Why is low debt important for stocks?

Low debt matters because it reduces financial risk and interest expense. Companies with less debt are less vulnerable to rising interest rates, economic downturns, and credit market disruptions. They have more cash available for dividends, buybacks, and growth investments. During the 2008 financial crisis, many overleveraged companies went bankrupt while low-debt peers survived and acquired assets cheaply. Low debt also gives management strategic flexibility to act on opportunities.

What is a good debt-to-equity ratio?

It varies by industry. Technology companies often operate with D/E below 0.5 because their businesses require little capital. Banks and utilities typically have D/E above 1.0 because leverage is inherent to their business models. Generally, a D/E below 0.5 is considered conservative, 0.5-1.0 is moderate, and above 1.0 is aggressive. The threshold of 0.3 used in this list identifies the most conservatively financed companies across all sectors.

Do low-debt stocks outperform during recessions?

Research shows that companies with strong balance sheets tend to outperform during economic downturns. They face lower risk of financial distress, maintain access to capital, and can acquire distressed competitors cheaply. During the 2020 COVID crash and the 2022 rate hiking cycle, low-debt companies experienced smaller drawdowns on average. However, during strong economic expansions, more leveraged companies can outperform because debt amplifies returns on equity.

What sectors typically have low debt?

Technology, healthcare, and some consumer sectors frequently have the lowest debt levels because their asset-light business models generate cash without requiring heavy borrowing. Software companies are especially common on low-debt lists. Sectors that naturally carry higher debt include utilities, real estate (REITs), banks, and capital-intensive industries like airlines and telecommunications. Some companies in these sectors maintain low debt by choice as a competitive advantage.

Can too little debt be bad?

In theory, yes. Some financial theory suggests that a moderate level of debt is optimal because interest payments are tax-deductible, lowering the effective cost of capital. A company with zero debt may be leaving this tax advantage unused. However, in practice, the benefits of financial flexibility and resilience during downturns often outweigh the tax shield from debt. Companies like Alphabet have operated with minimal debt while still delivering exceptional shareholder returns.

What is financial leverage?

Financial leverage refers to the use of borrowed money to amplify returns. A company that borrows at 5% interest and earns 15% on that capital pockets the 10% spread. However, leverage works both ways — during downturns, the fixed interest payments remain even as earnings decline, potentially causing financial distress. Low-leverage companies sacrifice some potential upside for greater stability and lower risk of bankruptcy. The debt-to-equity ratio is the most common measure of financial leverage.