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 Nov 7, 2026

$3.91T Total Market Cap

— Avg P/E Ratio

$107.26 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	$11.56	0.00	925.7K	9.26B	11.71B
2	GMED	Globus Medical Inc - A	$71.05	0.00	1.09M	5.47B	10.93B
3	GMED	Globus Medical Inc - A	$71.05	0.00	1.09M	5.47B	10.93B
4	XPEL	Xpel Inc	$40.06	0.00	104.0K	519.83M	1.04B
5	XPEL	Xpel Inc	$40.06	0.00	104.0K	519.83M	1.04B
6	CPRT	Copart Inc	$31.95	0.00	4.51M	15.04B	30.09B
7	CPRT	Copart Inc	$31.95	0.00	4.51M	15.04B	30.09B
8	PRLB	Proto Labs Inc	$68.89	0.00	300.8K	752.02M	1.50B
9	PRLB	Proto Labs Inc	$68.89	0.00	300.8K	752.02M	1.50B
10	ELE	Elemental Royalty Corp	$14.48	0.00	496.6K	827.74M	1.66B
11	ELE	Elemental Royalty Corp	$14.48	0.00	496.6K	827.74M	1.66B
12	TFPM	Triple Flag Precious Met	$31.53	0.00	3.04M	4.34B	8.68B
13	TFPM	Triple Flag Precious Met	$31.53	0.00	3.04M	4.34B	8.68B
14	SOUN	Soundhound Ai Inc-A	$4.11	0.00	646.7K	923.85M	1.85B
15	SOUN	Soundhound Ai Inc-A	$4.11	0.00	646.7K	923.85M	1.85B
16	UROY	Uranium Royalty Corp	$3.35	0.00	633.7K	905.31M	1.81B
17	ANDG	Andersen Group Inc - A	$65.19	0.00	2.62M	3.74B	7.49B
18	OLLI	Ollie'S Bargain Outlet Holdi	$90.44	0.00	2.14M	2.68B	5.36B
19	OLLI	Ollie'S Bargain Outlet Holdi	$90.44	0.00	2.14M	2.68B	5.36B
20	BRBR	Bellring Brands Inc	$9.17	0.00	425.7K	532.13M	1.07B
21	BRBR	Bellring Brands Inc	$9.17	0.00	425.7K	532.13M	1.07B
22	WPM	Wheaton Precious Metals Corp	$136.31	0.00	37.49M	41.66B	83.39B
23	WPM	Wheaton Precious Metals Corp	$136.31	0.00	37.49M	41.66B	83.39B
24	AZTA	Azenta Inc	$35.55	0.00	763.2K	848.02M	1.70B
25	AZTA	Azenta Inc	$35.55	0.00	763.2K	848.02M	1.70B
26	SAM	Boston Beer Company Inc-A	$220.66	0.00	1.48M	1.14B	2.28B
27	SAM	Boston Beer Company Inc-A	$220.66	0.00	1.48M	1.14B	2.28B
28	IOVA	Iovance Biotherapeutics Inc	$8.04	0.00	2.53M	1.81B	3.62B
29	GNTX	Gentex Corp	$20.06	0.00	3.14M	2.09B	4.19B
30	GNTX	Gentex Corp	$20.06	0.00	3.14M	2.09B	4.19B
31	ARM	Arm Holdings plc	$170.11	0.00	126.72M	84.48B	169.22B
32	ARM	Arm Holdings plc	$170.11	0.00	126.72M	84.48B	169.22B
33	EME	Emcor Group Inc	$608.45	0.00	22.60M	13.30B	26.64B
34	EME	Emcor Group Inc	$608.45	0.00	22.60M	13.30B	26.64B
35	TXRH	Texas Roadhouse Inc	$183.88	0.00	10.66M	5.92B	11.87B
36	TXRH	Texas Roadhouse Inc	$183.88	0.00	10.66M	5.92B	11.87B
37	NVTS	Navitas Semiconductor Corp	$8.62	0.00	2.08M	1.16B	2.32B
38	NVTS	Navitas Semiconductor Corp	$8.62	0.00	2.08M	1.16B	2.32B
39	MIAX	Miami International Holdings	$34.48	0.00	3.27M	1.72B	3.45B
40	NBIS	Nebius Group Nv	$129.49	0.00	20.56M	10.82B	32.72B
41	MIAX	Miami International Holdings	$34.48	0.00	3.27M	1.72B	3.45B
42	TROW	T Rowe Price Group Inc	$108.41	0.00	23.25M	11.62B	23.30B
43	TROW	T Rowe Price Group Inc	$108.41	0.00	23.25M	11.62B	23.30B
44	JJSF	J & J Snack Foods Corp	$89.18	0.00	1.70M	849.53M	1.70B
45	JJSF	J & J Snack Foods Corp	$89.18	0.00	1.70M	849.53M	1.70B
46	KYMR	Kymera Therapeutics Inc	$131.37	0.00	11.77M	5.60B	11.23B
47	KYMR	Kymera Therapeutics Inc	$131.37	0.00	11.77M	5.60B	11.23B
48	LZB	La-Z-Boy Inc	$30.44	0.00	1.37M	651.89M	1.31B
49	LZB	La-Z-Boy Inc	$30.44	0.00	1.37M	651.89M	1.31B
50	GCT	Gigacloud Technology Inc - A	$63.01	0.00	2.18M	1.04B	2.08B
51	GCT	Gigacloud Technology Inc - A	$63.01	0.00	2.18M	1.04B	2.08B
52	OR	Or Royalties Inc	$36.22	0.00	15.67M	4.48B	8.98B
53	OR	Or Royalties Inc	$36.22	0.00	15.67M	4.48B	8.98B
54	EWBC	East West Bancorp Inc	$128.84	0.00	35.22M	8.80B	17.68B
55	EWBC	East West Bancorp Inc	$128.84	0.00	35.22M	8.80B	17.68B
56	CGON	Cg Oncology Inc	$75.99	0.00	11.44M	2.86B	5.74B
57	ABSI	Absci Corp	$10.17	0.01	4.00M	868.66M	1.75B
58	ABSI	Absci Corp	$10.17	0.01	4.00M	868.66M	1.75B
59	REX	Rex American Resources Corp	$39.18	0.01	3.36M	646.55M	1.30B
60	REX	Rex American Resources Corp	$39.18	0.01	3.36M	646.55M	1.30B
61	GFR	Greenfire Resources Ltd	$5.48	0.01	3.48M	669.68M	1.35B
62	USAR	Usa Rare Earth Inc	$8.23	0.01	8.51M	1.58B	3.17B
63	WSO	Watsco Inc	$304.34	0.01	35.43M	6.22B	12.50B
64	WSO	Watsco Inc	$304.34	0.01	35.43M	6.22B	12.50B
65	VCEL	Vericel Corp	$54.19	0.01	7.36M	1.29B	2.60B
66	VCEL	Vericel Corp	$54.19	0.01	7.36M	1.29B	2.60B
67	VRTX	Vertex Pharmaceuticals Inc	$547.09	0.01	408.90M	68.15B	137.12B
68	VRTX	Vertex Pharmaceuticals Inc	$547.09	0.01	408.90M	68.15B	137.12B
69	CLBK	Columbia Financial Inc	$11.17	0.01	9.05M	1.48B	2.99B
70	CLBK	Columbia Financial Inc	$11.17	0.01	9.05M	1.48B	2.99B
71	IBRX	Immunitybio Inc	$8.55	0.01	28.47M	4.31B	8.69B
72	INCY	Incyte Corp	$119.65	0.01	80.58M	12.03B	24.22B
73	INCY	Incyte Corp	$119.65	0.01	80.58M	12.03B	24.22B
74	CVCO	Cavco Industries Inc	$638.55	0.01	16.39M	2.45B	4.92B
75	CVCO	Cavco Industries Inc	$638.55	0.01	16.39M	2.45B	4.92B
76	GIII	G-Iii Apparel Group Ltd	$32.02	0.01	4.57M	681.88M	1.37B
77	GIII	G-Iii Apparel Group Ltd	$32.02	0.01	4.57M	681.88M	1.37B
78	EPAM	Epam Systems Inc	$159.31	0.01	28.87M	4.25B	8.55B
79	EPAM	Epam Systems Inc	$159.31	0.01	28.87M	4.25B	8.55B
80	ROG	Rogers Corp	$122.22	0.01	7.81M	1.06B	2.13B
81	ROG	Rogers Corp	$122.22	0.01	7.81M	1.06B	2.13B
82	AMR	Alpha Metallurgical Resource	$150.94	0.01	8.20M	942.05M	1.90B
83	AMR	Alpha Metallurgical Resource	$150.94	0.01	8.20M	942.05M	1.90B
84	TR	Tootsie Roll Inds	$38.92	0.01	12.96M	1.44B	2.91B
85	TR	Tootsie Roll Inds	$38.92	0.01	12.96M	1.44B	2.91B
86	CGAU	Centerra Gold Inc	$21.78	0.01	26.10M	2.87B	5.79B
87	CGAU	Centerra Gold Inc	$21.78	0.01	26.10M	2.87B	5.79B
88	ODFL	Old Dominion Freight Line	$164.92	0.01	160.68M	17.28B	34.88B
89	ODFL	Old Dominion Freight Line	$164.92	0.01	160.68M	17.28B	34.88B
90	GGG	Graco Inc	$67.86	0.01	50.02M	5.38B	10.86B
91	GGG	Graco Inc	$67.86	0.01	50.02M	5.38B	10.86B
92	TH	Target Hospitality Corp	$10.42	0.01	5.42M	558.94M	1.13B
93	TH	Target Hospitality Corp	$10.42	0.01	5.42M	558.94M	1.13B
94	MDB	Mongodb Inc	$312.83	0.01	126.91M	12.44B	25.14B
95	MDB	Mongodb Inc	$312.83	0.01	126.91M	12.44B	25.14B
96	BOOT	Boot Barn Holdings Inc	$132.09	0.01	20.96M	2.05B	4.15B
97	BOOT	Boot Barn Holdings Inc	$132.09	0.01	20.96M	2.05B	4.15B
98	BRC	Brady Corporation - Cl A	$78.72	0.01	20.21M	1.84B	3.71B
99	BRC	Brady Corporation - Cl A	$78.72	0.01	20.21M	1.84B	3.71B
100	CRCL	Circle Internet Group Inc	$67.88	0.01	97.30M	8.77B	17.73B

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.