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 Aug 8, 2026

$3.25T Total Market Cap

— Avg P/E Ratio

$108.20 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	$16.16	0.00	925.7K	9.26B	16.74B
2	GMED	Globus Medical Inc - A	$82.35	0.00	1.10M	5.50B	11.00B
3	GMED	Globus Medical Inc - A	$82.35	0.00	1.10M	5.50B	11.00B
4	XPEL	Xpel Inc	$50.07	0.00	131.4K	656.92M	1.31B
5	XPEL	Xpel Inc	$50.07	0.00	131.4K	656.92M	1.31B
6	CPRT	Copart Inc	$29.66	0.00	4.01M	13.38B	26.77B
7	CPRT	Copart Inc	$29.66	0.00	4.01M	13.38B	26.77B
8	PRLB	Proto Labs Inc	$88.91	0.00	420.4K	1.05B	2.10B
9	PRLB	Proto Labs Inc	$88.91	0.00	420.4K	1.05B	2.10B
10	ELE	Elemental Royalty Corp	$19.17	0.00	482.4K	803.98M	1.61B
11	ELE	Elemental Royalty Corp	$19.17	0.00	482.4K	803.98M	1.61B
12	TFPM	Triple Flag Precious Met	$32.62	0.00	3.25M	4.64B	9.28B
13	TFPM	Triple Flag Precious Met	$32.62	0.00	3.25M	4.64B	9.28B
14	SOUN	Soundhound Ai Inc-A	$8.02	0.00	1.22M	1.75B	3.49B
15	SOUN	Soundhound Ai Inc-A	$8.02	0.00	1.22M	1.75B	3.49B
16	UROY	Uranium Royalty Corp	$4.15	0.00	635.2K	907.41M	1.82B
17	ANDG	Andersen Group Inc - A	$49.68	0.00	1.94M	2.76B	5.53B
18	OLLI	Ollie'S Bargain Outlet Holdi	$81.64	0.00	1.97M	2.47B	4.94B
19	OLLI	Ollie'S Bargain Outlet Holdi	$81.64	0.00	1.97M	2.47B	4.94B
20	BRBR	Bellring Brands Inc	$11.56	0.00	537.2K	671.55M	1.34B
21	BRBR	Bellring Brands Inc	$11.56	0.00	537.2K	671.55M	1.34B
22	WPM	Wheaton Precious Metals Corp	$134.20	0.00	35.91M	39.90B	79.87B
23	WPM	Wheaton Precious Metals Corp	$134.20	0.00	35.91M	39.90B	79.87B
24	AZTA	Azenta Inc	$32.04	0.00	649.7K	721.85M	1.45B
25	AZTA	Azenta Inc	$32.04	0.00	649.7K	721.85M	1.45B
26	NMAX	Newsmax Inc	$8.97	0.00	662.6K	552.14M	1.11B
27	NMAX	Newsmax Inc	$8.97	0.00	662.6K	552.14M	1.11B
28	SAM	Boston Beer Company Inc-A	$186.61	0.00	1.23M	945.55M	1.89B
29	SAM	Boston Beer Company Inc-A	$186.61	0.00	1.23M	945.55M	1.89B
30	IOVA	Iovance Biotherapeutics Inc	$6.34	0.00	1.90M	1.36B	2.72B
31	GNTX	Gentex Corp	$24.08	0.00	3.80M	2.53B	5.07B
32	GNTX	Gentex Corp	$24.08	0.00	3.80M	2.53B	5.07B
33	ARM	Arm Holdings plc	$282.46	0.00	126.72M	84.48B	169.22B
34	ARM	Arm Holdings plc	$282.46	0.00	126.72M	84.48B	169.22B
35	MZTI	Marzetti Company/The	$113.48	0.00	2.43M	1.52B	3.05B
36	MZTI	Marzetti Company/The	$113.48	0.00	2.43M	1.52B	3.05B
37	EME	Emcor Group Inc	$816.90	0.00	30.66M	18.04B	36.14B
38	EME	Emcor Group Inc	$816.90	0.00	30.66M	18.04B	36.14B
39	TXRH	Texas Roadhouse Inc	$208.00	0.00	12.29M	6.83B	13.68B
40	TXRH	Texas Roadhouse Inc	$208.00	0.00	12.29M	6.83B	13.68B
41	NVTS	Navitas Semiconductor Corp	$13.89	0.00	3.26M	1.81B	3.63B
42	NVTS	Navitas Semiconductor Corp	$13.89	0.00	3.26M	1.81B	3.63B
43	MIAX	Miami International Holdings	$44.23	0.00	4.17M	2.20B	4.40B
44	NBIS	Nebius Group Nv	$187.97	0.00	20.56M	10.82B	47.78B
45	MIAX	Miami International Holdings	$44.23	0.00	4.17M	2.20B	4.40B
46	TROW	T Rowe Price Group Inc	$114.02	0.00	24.03M	12.02B	24.08B
47	TROW	T Rowe Price Group Inc	$114.02	0.00	24.03M	12.02B	24.08B
48	JJSF	J & J Snack Foods Corp	$91.91	0.00	1.66M	832.11M	1.67B
49	JJSF	J & J Snack Foods Corp	$91.91	0.00	1.66M	832.11M	1.67B
50	KYMR	Kymera Therapeutics Inc	$107.52	0.00	9.37M	4.46B	8.94B
51	KYMR	Kymera Therapeutics Inc	$107.52	0.00	9.37M	4.46B	8.94B
52	LZB	La-Z-Boy Inc	$42.14	0.00	1.71M	815.82M	1.64B
53	LZB	La-Z-Boy Inc	$42.14	0.00	1.71M	815.82M	1.64B
54	GCT	Gigacloud Technology Inc - A	$53.25	0.00	2.02M	961.81M	1.93B
55	GCT	Gigacloud Technology Inc - A	$53.25	0.00	2.02M	961.81M	1.93B
56	OR	Or Royalties Inc	$33.08	0.00	14.65M	4.18B	8.40B
57	OR	Or Royalties Inc	$33.08	0.00	14.65M	4.18B	8.40B
58	EWBC	East West Bancorp Inc	$131.70	0.00	35.93M	8.98B	18.03B
59	EWBC	East West Bancorp Inc	$131.70	0.00	35.93M	8.98B	18.03B
60	CGON	Cg Oncology Inc	$75.10	0.00	13.15M	3.29B	6.60B
61	ABSI	Absci Corp	$8.93	0.01	3.46M	752.91M	1.51B
62	ABSI	Absci Corp	$8.93	0.01	3.46M	752.91M	1.51B
63	REX	Rex American Resources Corp	$42.80	0.01	3.74M	719.41M	1.45B
64	REX	Rex American Resources Corp	$42.80	0.01	3.74M	719.41M	1.45B
65	USAR	Usa Rare Earth Inc	$19.33	0.01	12.60M	2.33B	4.69B
66	WSO	Watsco Inc	$330.10	0.01	37.21M	6.53B	13.13B
67	WSO	Watsco Inc	$330.10	0.01	37.21M	6.53B	13.13B
68	VCEL	Vericel Corp	$45.09	0.01	6.49M	1.14B	2.29B
69	VCEL	Vericel Corp	$45.09	0.01	6.49M	1.14B	2.29B
70	VRTX	Vertex Pharmaceuticals Inc	$496.07	0.01	371.32M	61.89B	124.51B
71	VRTX	Vertex Pharmaceuticals Inc	$496.07	0.01	371.32M	61.89B	124.51B
72	CLBK	Columbia Financial Inc	$10.84	0.01	8.86M	1.45B	2.92B
73	CLBK	Columbia Financial Inc	$10.84	0.01	8.86M	1.45B	2.92B
74	IBRX	Immunitybio Inc	$7.64	0.01	25.99M	3.94B	7.93B
75	INCY	Incyte Corp	$120.56	0.01	81.21M	12.12B	24.40B
76	INCY	Incyte Corp	$120.56	0.01	81.21M	12.12B	24.40B
77	CVCO	Cavco Industries Inc	$592.23	0.01	15.10M	2.25B	4.54B
78	CVCO	Cavco Industries Inc	$592.23	0.01	15.10M	2.25B	4.54B
79	GIII	G-Iii Apparel Group Ltd	$35.46	0.01	4.99M	745.05M	1.50B
80	GIII	G-Iii Apparel Group Ltd	$35.46	0.01	4.99M	745.05M	1.50B
81	EPAM	Epam Systems Inc	$97.43	0.01	16.42M	2.41B	4.86B
82	EPAM	Epam Systems Inc	$97.43	0.01	16.42M	2.41B	4.86B
83	ROG	Rogers Corp	$134.49	0.01	8.77M	1.19B	2.39B
84	ROG	Rogers Corp	$134.49	0.01	8.77M	1.19B	2.39B
85	AMR	Alpha Metallurgical Resource	$151.95	0.01	8.27M	950.56M	1.92B
86	AMR	Alpha Metallurgical Resource	$151.95	0.01	8.27M	950.56M	1.92B
87	TR	Tootsie Roll Inds	$39.63	0.01	13.41M	1.49B	3.01B
88	TR	Tootsie Roll Inds	$39.63	0.01	13.41M	1.49B	3.01B
89	CGAU	Centerra Gold Inc	$21.24	0.01	24.52M	2.69B	5.44B
90	CGAU	Centerra Gold Inc	$21.24	0.01	24.52M	2.69B	5.44B
91	ODFL	Old Dominion Freight Line	$216.36	0.01	206.20M	22.17B	44.76B
92	ODFL	Old Dominion Freight Line	$216.36	0.01	206.20M	22.17B	44.76B
93	GGG	Graco Inc	$83.54	0.01	62.33M	6.70B	13.53B
94	GGG	Graco Inc	$83.54	0.01	62.33M	6.70B	13.53B
95	TH	Target Hospitality Corp	$16.51	0.01	7.93M	817.63M	1.65B
96	TH	Target Hospitality Corp	$16.51	0.01	7.93M	817.63M	1.65B
97	MDB	Mongodb Inc	$398.80	0.01	160.95M	15.78B	31.88B
98	MDB	Mongodb Inc	$398.80	0.01	160.95M	15.78B	31.88B
99	BOOT	Boot Barn Holdings Inc	$163.60	0.01	25.08M	2.46B	4.97B
100	BOOT	Boot Barn Holdings Inc	$163.60	0.01	25.08M	2.46B	4.97B

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.