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 Jun 24, 2026

$3.27T Total Market Cap

— Avg P/E Ratio

$109.87 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	$16.93	0.00	925.7K	9.26B	12.88B
2	GMED	Globus Medical Inc - A	$82.12	0.00	1.07M	5.37B	10.75B
3	GMED	Globus Medical Inc - A	$82.12	0.00	1.07M	5.37B	10.75B
4	XPEL	Xpel Inc	$46.85	0.00	125.2K	626.20M	1.25B
5	XPEL	Xpel Inc	$46.85	0.00	125.2K	626.20M	1.25B
6	CPRT	Copart Inc	$30.40	0.00	4.20M	13.99B	27.99B
7	CPRT	Copart Inc	$30.40	0.00	4.20M	13.99B	27.99B
8	PRLB	Proto Labs Inc	$79.81	0.00	385.6K	963.99M	1.93B
9	PRLB	Proto Labs Inc	$79.81	0.00	385.6K	963.99M	1.93B
10	ELE	Elemental Royalty Corp	$15.71	0.00	431.8K	719.69M	1.44B
11	ELE	Elemental Royalty Corp	$15.71	0.00	431.8K	719.69M	1.44B
12	TFPM	Triple Flag Precious Met	$28.07	0.00	3.07M	4.38B	8.77B
13	TFPM	Triple Flag Precious Met	$28.07	0.00	3.07M	4.38B	8.77B
14	SOUN	Soundhound Ai Inc-A	$6.34	0.00	1.08M	1.54B	3.08B
15	SOUN	Soundhound Ai Inc-A	$6.34	0.00	1.08M	1.54B	3.08B
16	ANDG	Andersen Group Inc - A	$37.17	0.00	1.47M	2.10B	4.20B
17	OLLI	Ollie'S Bargain Outlet Holdi	$74.09	0.00	1.86M	2.32B	4.65B
18	OLLI	Ollie'S Bargain Outlet Holdi	$74.09	0.00	1.86M	2.32B	4.65B
19	BRBR	Bellring Brands Inc	$9.46	0.00	439.6K	549.55M	1.10B
20	BRBR	Bellring Brands Inc	$9.46	0.00	439.6K	549.55M	1.10B
21	WPM	Wheaton Precious Metals Corp	$112.79	0.00	35.34M	39.26B	78.60B
22	WPM	Wheaton Precious Metals Corp	$112.79	0.00	35.34M	39.26B	78.60B
23	AZTA	Azenta Inc	$23.31	0.00	483.1K	536.73M	1.07B
24	AZTA	Azenta Inc	$23.31	0.00	483.1K	536.73M	1.07B
25	NMAX	Newsmax Inc	$7.03	0.00	602.2K	501.83M	1.00B
26	NMAX	Newsmax Inc	$7.03	0.00	602.2K	501.83M	1.00B
27	SAM	Boston Beer Company Inc-A	$176.11	0.00	1.19M	915.76M	1.83B
28	SAM	Boston Beer Company Inc-A	$176.11	0.00	1.19M	915.76M	1.83B
29	UAMY	United States Antimony Corp	$7.85	0.00	813.1K	580.82M	1.16B
30	UAMY	United States Antimony Corp	$7.85	0.00	813.1K	580.82M	1.16B
31	IOVA	Iovance Biotherapeutics Inc	$4.38	0.00	1.22M	871.69M	1.75B
32	GNTX	Gentex Corp	$25.04	0.00	4.14M	2.76B	5.53B
33	GNTX	Gentex Corp	$25.04	0.00	4.14M	2.76B	5.53B
34	ARM	Arm Holdings plc	$351.57	0.00	126.72M	84.48B	169.22B
35	ARM	Arm Holdings plc	$351.57	0.00	126.72M	84.48B	169.22B
36	MZTI	Marzetti Company/The	$112.56	0.00	2.34M	1.47B	2.94B
37	MZTI	Marzetti Company/The	$112.56	0.00	2.34M	1.47B	2.94B
38	EME	Emcor Group Inc	$847.17	0.00	31.55M	18.56B	37.18B
39	EME	Emcor Group Inc	$847.17	0.00	31.55M	18.56B	37.18B
40	TXRH	Texas Roadhouse Inc	$187.02	0.00	10.50M	5.83B	11.68B
41	TXRH	Texas Roadhouse Inc	$187.02	0.00	10.50M	5.83B	11.68B
42	NVTS	Navitas Semiconductor Corp	$21.42	0.00	5.04M	2.80B	5.61B
43	NVTS	Navitas Semiconductor Corp	$21.42	0.00	5.04M	2.80B	5.61B
44	MIAX	Miami International Holdings	$36.49	0.00	3.39M	1.78B	3.57B
45	NBIS	Nebius Group Nv	$259.66	0.00	20.56M	10.82B	72.15B
46	MIAX	Miami International Holdings	$36.49	0.00	3.39M	1.78B	3.57B
47	TROW	T Rowe Price Group Inc	$105.20	0.00	23.02M	11.51B	23.07B
48	TROW	T Rowe Price Group Inc	$105.20	0.00	23.02M	11.51B	23.07B
49	JJSF	J & J Snack Foods Corp	$72.47	0.00	1.40M	697.92M	1.40B
50	JJSF	J & J Snack Foods Corp	$72.47	0.00	1.40M	697.92M	1.40B
51	KYMR	Kymera Therapeutics Inc	$99.87	0.00	7.79M	3.71B	7.44B
52	KYMR	Kymera Therapeutics Inc	$99.87	0.00	7.79M	3.71B	7.44B
53	GCT	Gigacloud Technology Inc - A	$33.32	0.00	1.31M	623.71M	1.25B
54	GCT	Gigacloud Technology Inc - A	$33.32	0.00	1.31M	623.71M	1.25B
55	LZB	La-Z-Boy Inc	$40.30	0.00	2.13M	789.03M	1.58B
56	LZB	La-Z-Boy Inc	$40.30	0.00	2.13M	789.03M	1.58B
57	OR	Or Royalties Inc	$31.41	0.00	16.10M	4.60B	9.23B
58	OR	Or Royalties Inc	$31.41	0.00	16.10M	4.60B	9.23B
59	EWBC	East West Bancorp Inc	$130.69	0.00	34.61M	8.65B	17.37B
60	EWBC	East West Bancorp Inc	$130.69	0.00	34.61M	8.65B	17.37B
61	CGON	Cg Oncology Inc	$68.72	0.00	10.73M	2.68B	5.39B
62	ABSI	Absci Corp	$9.16	0.01	2.64M	574.98M	1.16B
63	ABSI	Absci Corp	$9.16	0.01	2.64M	574.98M	1.16B
64	REX	Rex American Resources Corp	$43.84	0.01	3.73M	718.26M	1.44B
65	REX	Rex American Resources Corp	$43.84	0.01	3.73M	718.26M	1.44B
66	USAR	Usa Rare Earth Inc	$21.42	0.01	15.12M	2.80B	5.63B
67	WSO	Watsco Inc	$400.98	0.01	45.58M	8.00B	16.08B
68	WSO	Watsco Inc	$400.98	0.01	45.58M	8.00B	16.08B
69	VCEL	Vericel Corp	$40.10	0.01	5.80M	1.02B	2.05B
70	VCEL	Vericel Corp	$40.10	0.01	5.80M	1.02B	2.05B
71	VRTX	Vertex Pharmaceuticals Inc	$475.20	0.01	341.83M	56.97B	114.63B
72	VRTX	Vertex Pharmaceuticals Inc	$475.20	0.01	341.83M	56.97B	114.63B
73	CLBK	Columbia Financial Inc	$19.84	0.01	6.32M	1.04B	2.08B
74	CLBK	Columbia Financial Inc	$19.84	0.01	6.32M	1.04B	2.08B
75	IBRX	Immunitybio Inc	$7.80	0.01	25.27M	3.83B	7.71B
76	INCY	Incyte Corp	$108.46	0.01	65.30M	9.75B	19.62B
77	INCY	Incyte Corp	$108.46	0.01	65.30M	9.75B	19.62B
78	CVCO	Cavco Industries Inc	$611.60	0.01	15.43M	2.30B	4.64B
79	CVCO	Cavco Industries Inc	$611.60	0.01	15.43M	2.30B	4.64B
80	GIII	G-Iii Apparel Group Ltd	$34.77	0.01	4.88M	728.60M	1.47B
81	GIII	G-Iii Apparel Group Ltd	$34.77	0.01	4.88M	728.60M	1.47B
82	EPAM	Epam Systems Inc	$78.39	0.01	13.52M	1.99B	4.00B
83	EPAM	Epam Systems Inc	$78.39	0.01	13.52M	1.99B	4.00B
84	ROG	Rogers Corp	$158.61	0.01	10.66M	1.44B	2.90B
85	ROG	Rogers Corp	$158.61	0.01	10.66M	1.44B	2.90B
86	IESC	Ies Holdings Inc	$747.49	0.01	60.51M	7.04B	14.19B
87	AMR	Alpha Metallurgical Resource	$185.77	0.01	10.19M	1.17B	2.36B
88	AMR	Alpha Metallurgical Resource	$185.77	0.01	10.19M	1.17B	2.36B
89	TR	Tootsie Roll Inds	$37.94	0.01	12.54M	1.39B	2.81B
90	TR	Tootsie Roll Inds	$37.94	0.01	12.54M	1.39B	2.81B
91	CGAU	Centerra Gold Inc	$15.52	0.01	21.01M	2.31B	4.66B
92	CGAU	Centerra Gold Inc	$15.52	0.01	21.01M	2.31B	4.66B
93	ODFL	Old Dominion Freight Line	$219.04	0.01	211.79M	22.77B	45.97B
94	ODFL	Old Dominion Freight Line	$219.04	0.01	211.79M	22.77B	45.97B
95	GGG	Graco Inc	$75.00	0.01	58.14M	6.25B	12.62B
96	GGG	Graco Inc	$75.00	0.01	58.14M	6.25B	12.62B
97	TH	Target Hospitality Corp	$20.59	0.01	9.64M	994.18M	2.01B
98	TH	Target Hospitality Corp	$20.59	0.01	9.64M	994.18M	2.01B
99	MDB	Mongodb Inc	$302.44	0.01	135.12M	13.25B	26.76B
100	MDB	Mongodb Inc	$302.44	0.01	135.12M	13.25B	26.76B

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.