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 May 9, 2026

$3.31T Total Market Cap

— Avg P/E Ratio

$112.35 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	$18.76	0.00	925.7K	9.26B	13.60B
2	GMED	Globus Medical Inc - A	$77.95	0.00	1.08M	5.38B	10.75B
3	GMED	Globus Medical Inc - A	$77.95	0.00	1.08M	5.38B	10.75B
4	XPEL	Xpel Inc	$43.55	0.00	121.7K	608.31M	1.22B
5	XPEL	Xpel Inc	$43.55	0.00	121.7K	608.31M	1.22B
6	PRLB	Proto Labs Inc	$69.30	0.00	324.3K	810.70M	1.62B
7	PRLB	Proto Labs Inc	$69.30	0.00	324.3K	810.70M	1.62B
8	GHM	Graham Corp	$94.80	0.00	272.8K	545.50M	1.09B
9	GHM	Graham Corp	$94.80	0.00	272.8K	545.50M	1.09B
10	ELE	Elemental Royalty Corp	$18.86	0.00	481.6K	802.71M	1.61B
11	ELE	Elemental Royalty Corp	$18.86	0.00	481.6K	802.71M	1.61B
12	TFPM	Triple Flag Precious Met	$33.38	0.00	3.21M	4.59B	9.19B
13	TFPM	Triple Flag Precious Met	$33.38	0.00	3.21M	4.59B	9.19B
14	SOUN	Soundhound Ai Inc-A	$8.88	0.00	1.44M	2.05B	4.10B
15	SOUN	Soundhound Ai Inc-A	$8.88	0.00	1.44M	2.05B	4.10B
16	ANDG	Andersen Group Inc - A	$34.24	0.00	1.40M	2.00B	4.01B
17	OLLI	Ollie'S Bargain Outlet Holdi	$82.21	0.00	1.99M	2.49B	4.98B
18	OLLI	Ollie'S Bargain Outlet Holdi	$82.21	0.00	1.99M	2.49B	4.98B
19	BRBR	Bellring Brands Inc	$17.20	0.00	486.1K	607.65M	1.22B
20	BRBR	Bellring Brands Inc	$17.20	0.00	486.1K	607.65M	1.22B
21	WPM	Wheaton Precious Metals Corp	$138.85	0.00	37.52M	41.69B	83.46B
22	WPM	Wheaton Precious Metals Corp	$138.85	0.00	37.52M	41.69B	83.46B
23	SAM	Boston Beer Company Inc-A	$197.34	0.00	1.36M	1.05B	2.10B
24	SAM	Boston Beer Company Inc-A	$197.34	0.00	1.36M	1.05B	2.10B
25	UAMY	United States Antimony Corp	$12.15	0.00	1.10M	783.12M	1.57B
26	UAMY	United States Antimony Corp	$12.15	0.00	1.10M	783.12M	1.57B
27	IOVA	Iovance Biotherapeutics Inc	$3.46	0.00	1.13M	807.04M	1.62B
28	GNTX	Gentex Corp	$23.39	0.00	3.69M	2.46B	4.93B
29	GNTX	Gentex Corp	$23.39	0.00	3.69M	2.46B	4.93B
30	ARM	Arm Holdings plc	$214.84	0.00	126.72M	84.48B	169.22B
31	ARM	Arm Holdings plc	$214.84	0.00	126.72M	84.48B	169.22B
32	MZTI	Marzetti Company/The	$113.69	0.00	2.52M	1.58B	3.16B
33	MZTI	Marzetti Company/The	$113.69	0.00	2.52M	1.58B	3.16B
34	EME	Emcor Group Inc	$921.64	0.00	32.87M	19.34B	38.74B
35	EME	Emcor Group Inc	$921.64	0.00	32.87M	19.34B	38.74B
36	TXRH	Texas Roadhouse Inc	$177.38	0.00	10.58M	5.88B	11.78B
37	TXRH	Texas Roadhouse Inc	$177.38	0.00	10.58M	5.88B	11.78B
38	NVTS	Navitas Semiconductor Corp	$17.55	0.00	3.32M	1.84B	3.69B
39	NVTS	Navitas Semiconductor Corp	$17.55	0.00	3.32M	1.84B	3.69B
40	MIAX	Miami International Holdings	$51.99	0.00	4.33M	2.28B	4.56B
41	NBIS	Nebius Group Nv	$177.05	0.00	42.94M	22.60B	45.29B
42	NBIS	Nebius Group Nv	$177.05	0.00	20.56M	10.82B	45.29B
43	MIAX	Miami International Holdings	$51.99	0.00	4.33M	2.28B	4.56B
44	TROW	T Rowe Price Group Inc	$105.33	0.00	22.39M	11.20B	22.44B
45	TROW	T Rowe Price Group Inc	$105.33	0.00	22.39M	11.20B	22.44B
46	JJSF	J & J Snack Foods Corp	$76.17	0.00	1.41M	703.93M	1.41B
47	JJSF	J & J Snack Foods Corp	$76.17	0.00	1.41M	703.93M	1.41B
48	KYMR	Kymera Therapeutics Inc	$86.08	0.00	7.29M	3.47B	6.96B
49	KYMR	Kymera Therapeutics Inc	$86.08	0.00	7.29M	3.47B	6.96B
50	GCT	Gigacloud Technology Inc - A	$40.18	0.00	1.64M	782.72M	1.57B
51	GCT	Gigacloud Technology Inc - A	$40.18	0.00	1.64M	782.72M	1.57B
52	LZB	La-Z-Boy Inc	$35.73	0.00	1.97M	731.38M	1.47B
53	LZB	La-Z-Boy Inc	$35.73	0.00	1.97M	731.38M	1.47B
54	OR	Or Royalties Inc	$38.42	0.00	16.71M	4.77B	9.58B
55	OR	Or Royalties Inc	$38.42	0.00	16.71M	4.77B	9.58B
56	EWBC	East West Bancorp Inc	$122.99	0.00	33.28M	8.32B	16.71B
57	EWBC	East West Bancorp Inc	$122.99	0.00	33.28M	8.32B	16.71B
58	CGON	Cg Oncology Inc	$69.62	0.00	11.64M	2.91B	5.84B
59	GILT	Gilat Satellite Networks Ltd	$18.34	0.00	2.92M	730.45M	1.47B
60	GILT	Gilat Satellite Networks Ltd	$18.34	0.00	2.92M	730.45M	1.47B
61	REX	Rex American Resources Corp	$49.97	0.01	4.26M	818.53M	1.65B
62	REX	Rex American Resources Corp	$49.97	0.01	4.26M	818.53M	1.65B
63	USAR	Usa Rare Earth Inc	$26.96	0.01	15.44M	2.86B	5.75B
64	WSO	Watsco Inc	$420.60	0.01	46.61M	8.18B	16.45B
65	WSO	Watsco Inc	$420.60	0.01	46.61M	8.18B	16.45B
66	VCEL	Vericel Corp	$35.57	0.01	4.85M	850.29M	1.71B
67	VCEL	Vericel Corp	$35.57	0.01	4.85M	850.29M	1.71B
68	VRTX	Vertex Pharmaceuticals Inc	$429.82	0.01	326.54M	54.42B	109.50B
69	VRTX	Vertex Pharmaceuticals Inc	$429.82	0.01	326.54M	54.42B	109.50B
70	CLBK	Columbia Financial Inc	$19.32	0.01	6.16M	1.01B	2.03B
71	CLBK	Columbia Financial Inc	$19.32	0.01	6.16M	1.01B	2.03B
72	IBRX	Immunitybio Inc	$8.51	0.01	28.60M	4.33B	8.72B
73	INCY	Incyte Corp	$98.56	0.01	65.40M	9.76B	19.65B
74	INCY	Incyte Corp	$98.56	0.01	65.40M	9.76B	19.65B
75	HLI	Houlihan Lokey Inc	$152.87	0.01	35.42M	5.29B	10.64B
76	HLI	Houlihan Lokey Inc	$152.87	0.01	35.42M	5.29B	10.64B
77	GIII	G-Iii Apparel Group Ltd	$31.67	0.01	4.40M	657.02M	1.32B
78	GIII	G-Iii Apparel Group Ltd	$31.67	0.01	4.40M	657.02M	1.32B
79	EPAM	Epam Systems Inc	$99.23	0.01	17.69M	2.60B	5.24B
80	EPAM	Epam Systems Inc	$99.23	0.01	17.69M	2.60B	5.24B
81	CVCO	Cavco Industries Inc	$484.54	0.01	13.46M	1.87B	3.76B
82	CVCO	Cavco Industries Inc	$484.54	0.01	13.46M	1.87B	3.76B
83	ROG	Rogers Corp	$138.98	0.01	9.18M	1.24B	2.50B
84	ROG	Rogers Corp	$138.98	0.01	9.18M	1.24B	2.50B
85	IESC	Ies Holdings Inc	$666.70	0.01	56.23M	6.54B	13.19B
86	AMR	Alpha Metallurgical Resource	$184.11	0.01	10.15M	1.17B	2.35B
87	AMR	Alpha Metallurgical Resource	$184.11	0.01	10.15M	1.17B	2.35B
88	TR	Tootsie Roll Inds	$42.50	0.01	13.85M	1.54B	3.11B
89	TR	Tootsie Roll Inds	$42.50	0.01	13.85M	1.54B	3.11B
90	CGAU	Centerra Gold Inc	$18.39	0.01	21.83M	2.40B	4.84B
91	CGAU	Centerra Gold Inc	$18.39	0.01	21.83M	2.40B	4.84B
92	ODFL	Old Dominion Freight Line	$198.33	0.01	198.27M	21.32B	43.04B
93	ODFL	Old Dominion Freight Line	$198.33	0.01	198.27M	21.32B	43.04B
94	GGG	Graco Inc	$77.59	0.01	60.15M	6.47B	13.06B
95	GGG	Graco Inc	$77.59	0.01	60.15M	6.47B	13.06B
96	TH	Target Hospitality Corp	$15.33	0.01	7.31M	753.83M	1.52B
97	TH	Target Hospitality Corp	$15.33	0.01	7.31M	753.83M	1.52B
98	MDB	Mongodb Inc	$299.47	0.01	121.51M	11.91B	24.07B
99	MDB	Mongodb Inc	$299.47	0.01	121.51M	11.91B	24.07B
100	LSPD	Lightspeed Commerce Inc	$9.64	0.01	8.91M	873.93M	1.77B

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.