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 Mar 26, 2026

$3.23T Total Market Cap

— Avg P/E Ratio

$114.34 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	$20.46	0.00	925.7K	9.26B	18.52B
2	QXO	Qxo Inc	$20.46	0.00	925.7K	9.26B	18.52B
3	GMED	Globus Medical Inc - A	$87.35	0.00	1.17M	5.87B	11.73B
4	GMED	Globus Medical Inc - A	$87.35	0.00	1.17M	5.87B	11.73B
5	XPEL	Xpel Inc	$41.10	0.00	104.3K	521.56M	1.04B
6	XPEL	Xpel Inc	$41.10	0.00	104.3K	521.56M	1.04B
7	SOUN	Soundhound Ai Inc-A	$6.48	0.00	493.3K	1.64B	3.29B
8	SOUN	Soundhound Ai Inc-A	$6.48	0.00	493.3K	1.64B	3.29B
9	PRLB	Proto Labs Inc	$55.75	0.00	309.0K	772.45M	1.55B
10	PRLB	Proto Labs Inc	$55.75	0.00	309.0K	772.45M	1.55B
11	ACLX	Arcellx Inc	$114.54	0.00	961.3K	1.92B	3.85B
12	WPM	Wheaton Precious Metals Corp	$122.64	0.00	33.35M	47.64B	95.34B
13	WPM	Wheaton Precious Metals Corp	$122.64	0.00	33.35M	47.64B	95.34B
14	ANDG	Andersen Group Inc - A	$27.90	0.00	846.8K	1.21B	2.42B
15	BRBR	Bellring Brands Inc	$16.33	0.00	889.6K	1.11B	2.23B
16	BRBR	Bellring Brands Inc	$16.33	0.00	889.6K	1.11B	2.23B
17	OLLI	Ollie'S Bargain Outlet Holdi	$91.01	0.00	3.01M	3.35B	6.70B
18	OLLI	Ollie'S Bargain Outlet Holdi	$91.01	0.00	3.01M	3.35B	6.70B
19	AZTA	Azenta Inc	$20.19	0.00	451.9K	502.08M	1.01B
20	AZTA	Azenta Inc	$20.19	0.00	451.9K	502.08M	1.01B
21	TFPM	Triple Flag Precious Met	$32.47	0.00	5.08M	5.08B	10.17B
22	TFPM	Triple Flag Precious Met	$32.47	0.00	5.08M	5.08B	10.17B
23	IOVA	Iovance Biotherapeutics Inc	$3.89	0.00	790.8K	564.89M	1.13B
24	GNTX	Gentex Corp	$21.93	0.00	3.37M	2.25B	4.50B
25	GNTX	Gentex Corp	$21.93	0.00	3.37M	2.25B	4.50B
26	ARM	Arm Holdings plc	$160.26	0.00	103.25M	68.83B	137.87B
27	ARM	Arm Holdings plc	$160.26	0.00	103.25M	68.83B	137.87B
28	MZTI	Marzetti Company/The	$139.86	0.00	3.56M	2.22B	4.45B
29	MZTI	Marzetti Company/The	$139.86	0.00	3.56M	2.22B	4.45B
30	EME	Emcor Group Inc	$764.76	0.00	27.39M	16.11B	32.28B
31	EME	Emcor Group Inc	$764.76	0.00	27.39M	16.11B	32.28B
32	TXRH	Texas Roadhouse Inc	$169.08	0.00	10.12M	5.62B	11.26B
33	TXRH	Texas Roadhouse Inc	$169.08	0.00	10.12M	5.62B	11.26B
34	NVTS	Navitas Semiconductor Corp	$8.75	0.00	1.90M	1.06B	2.12B
35	NVTS	Navitas Semiconductor Corp	$8.75	0.00	1.90M	1.06B	2.12B
36	NBIS	Nebius Group Nv	$115.09	0.00	24.51M	12.90B	25.85B
37	NBIS	Nebius Group Nv	$115.09	0.00	20.56M	10.82B	25.85B
38	JJSF	J & J Snack Foods Corp	$76.69	0.00	1.61M	804.69M	1.61B
39	JJSF	J & J Snack Foods Corp	$76.69	0.00	1.61M	804.69M	1.61B
40	GCT	Gigacloud Technology Inc - A	$44.69	0.00	1.64M	780.89M	1.57B
41	GCT	Gigacloud Technology Inc - A	$44.69	0.00	1.64M	780.89M	1.57B
42	LZB	La-Z-Boy Inc	$31.54	0.00	1.99M	736.38M	1.48B
43	LZB	La-Z-Boy Inc	$31.54	0.00	1.99M	736.38M	1.48B
44	SAM	Boston Beer Company Inc-A	$223.21	0.00	3.79M	1.22B	2.45B
45	SAM	Boston Beer Company Inc-A	$223.21	0.00	3.79M	1.22B	2.45B
46	GME	Gamestop Corp-Class A	$23.08	0.00	18.23M	5.36B	10.76B
47	GME	Gamestop Corp-Class A	$23.08	0.00	18.23M	5.36B	10.76B
48	AMR	Alpha Metallurgical Resource	$193.69	0.00	3.96M	1.13B	2.27B
49	AMR	Alpha Metallurgical Resource	$193.69	0.00	3.96M	1.13B	2.27B
50	RELY	Remitly Global Inc	$16.16	0.00	6.60M	1.78B	3.58B
51	RELY	Remitly Global Inc	$16.16	0.00	6.60M	1.78B	3.58B
52	GIII	G-Iii Apparel Group Ltd	$26.08	0.00	2.27M	612.54M	1.23B
53	GIII	G-Iii Apparel Group Ltd	$26.08	0.00	2.27M	612.54M	1.23B
54	RES	Rpc Inc	$7.00	0.00	2.57M	676.75M	1.36B
55	RES	Rpc Inc	$7.00	0.00	2.57M	676.75M	1.36B
56	EWBC	East West Bancorp Inc	$106.77	0.00	32.66M	8.16B	16.39B
57	EWBC	East West Bancorp Inc	$106.77	0.00	32.66M	8.16B	16.39B
58	ORLA	Orla Mining Ltd	$14.56	0.00	19.79M	4.60B	9.25B
59	DNN	Denison Mines Corp	$3.57	0.00	10.18M	2.37B	4.76B
60	DNN	Denison Mines Corp	$3.57	0.00	10.18M	2.37B	4.76B
61	KYMR	Kymera Therapeutics Inc	$78.93	0.01	15.30M	3.40B	6.83B
62	KYMR	Kymera Therapeutics Inc	$78.93	0.01	15.30M	3.40B	6.83B
63	TROW	T Rowe Price Group Inc	$89.58	0.01	58.02M	10.18B	20.47B
64	TROW	T Rowe Price Group Inc	$89.58	0.01	58.02M	10.18B	20.47B
65	WSO	Watsco Inc	$367.15	0.01	42.67M	7.49B	15.06B
66	WSO	Watsco Inc	$367.15	0.01	42.67M	7.49B	15.06B
67	VCEL	Vericel Corp	$32.45	0.01	4.66M	818.36M	1.65B
68	VCEL	Vericel Corp	$32.45	0.01	4.66M	818.36M	1.65B
69	VRTX	Vertex Pharmaceuticals Inc	$454.97	0.01	344.52M	57.42B	115.53B
70	VRTX	Vertex Pharmaceuticals Inc	$454.97	0.01	344.52M	57.42B	115.53B
71	IBRX	Immunitybio Inc	$8.07	0.01	27.80M	4.21B	8.48B
72	GILT	Gilat Satellite Networks Ltd	$16.25	0.01	4.25M	644.53M	1.30B
73	GILT	Gilat Satellite Networks Ltd	$16.25	0.01	4.25M	644.53M	1.30B
74	INCY	Incyte Corp	$92.23	0.01	67.37M	10.06B	20.25B
75	INCY	Incyte Corp	$92.23	0.01	67.37M	10.06B	20.25B
76	HLI	Houlihan Lokey Inc	$141.88	0.01	36.53M	5.45B	10.98B
77	HLI	Houlihan Lokey Inc	$141.88	0.01	36.53M	5.45B	10.98B
78	EPAM	Epam Systems Inc	$133.26	0.01	26.46M	3.83B	7.72B
79	EPAM	Epam Systems Inc	$133.26	0.01	26.46M	3.83B	7.72B
80	RCAT	Red Cat Holdings Inc	$15.87	0.01	6.28M	897.06M	1.81B
81	RCAT	Red Cat Holdings Inc	$15.87	0.01	6.28M	897.06M	1.81B
82	CVCO	Cavco Industries Inc	$485.50	0.01	15.61M	2.17B	4.37B
83	CVCO	Cavco Industries Inc	$485.50	0.01	15.61M	2.17B	4.37B
84	ROG	Rogers Corp	$106.04	0.01	6.78M	916.51M	1.85B
85	ROG	Rogers Corp	$106.04	0.01	6.78M	916.51M	1.85B
86	DLO	Dlocal Ltd	$13.02	0.01	15.55M	1.90B	3.82B
87	DLO	Dlocal Ltd	$13.02	0.01	15.55M	1.90B	3.82B
88	IESC	Ies Holdings Inc	$501.27	0.01	43.07M	5.01B	10.10B
89	CGAU	Centerra Gold Inc	$16.94	0.01	22.71M	2.50B	5.04B
90	CGAU	Centerra Gold Inc	$16.94	0.01	22.71M	2.50B	5.04B
91	ODFL	Old Dominion Freight Line	$189.05	0.01	187.53M	20.16B	40.70B
92	ODFL	Old Dominion Freight Line	$189.05	0.01	187.53M	20.16B	40.70B
93	GGG	Graco Inc	$86.04	0.01	64.20M	6.90B	13.93B
94	GGG	Graco Inc	$86.04	0.01	64.20M	6.90B	13.93B
95	TR	Tootsie Roll Inds	$41.61	0.01	13.09M	1.35B	2.73B
96	TR	Tootsie Roll Inds	$41.61	0.01	13.09M	1.35B	2.73B
97	LSPD	Lightspeed Commerce Inc	$8.96	0.01	8.83M	865.78M	1.75B
98	LSPD	Lightspeed Commerce Inc	$8.96	0.01	8.83M	865.78M	1.75B
99	CRCL	Circle Internet Group Inc	$103.86	0.01	177.48M	15.99B	32.33B
100	CRCL	Circle Internet Group Inc	$103.86	0.01	177.48M	15.99B	32.33B

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.