What are the top 10 debt free stocks under 200 rs?

Based on the one-year return, the top ten Debt-Free Stocks under Rs 200 are ACE Software Exports Ltd, Swadeshi Polytex Ltd, Daikaffil Chemicals India Ltd, Scarnose International Ltd, Remedium Lifecare Ltd, Bhilwara Spinners Ltd, BN Rathi Securities Ltd, Industrial Investment Trust Ltd, Global Pet Industries Ltd, and ...

How to find debt free stocks?

In order to check if a company is debt-free or not, simply check the company's debt-to-equity ratio . If the ratio is zero, then that means that the company has virtually zero debt. If the company has a debt-to-equity ratio of less than 1, that means debt financing is overall lower than equity financing.

Is it good to invest in a debt-free company?

Is A Debt-Free Company Good? Well, whether a debt-free company is good or not is a subjective thing . But if a company opts for equity financing over debt, it may end up paying higher taxes. And if equity financing is preferred over Debt, then there will be a low earning per share (EPS) Ratio.

Is being debt free the new rich?

Myth 1: Being debt-free means being rich . A common misconception is equating a lack of debt with wealth. Having debt simply means that you owe money to creditors.

Can a stock sale be cash free debt free?

Most control equity transactions (where Buyer acquires a control equity stake) are structured on a cash free, debt free basis . This means that the Seller is entitled to the cash on the balance sheet, and that the Seller is responsible for debts owed by the company (defined as indebtedness in the image below).

What is the largest debt company in the world?

Fannie Mae is the world's largest debtor, carrying $4.232 trillion in debt. U.S. companies make up 60.13% of the $10.8 trillion owed by the top 100 global companies in debt. Toyota holds the title of the world's most indebted company outside the financial industries, with a debt of $221.13 billion.

What is a zero debt company?

July 27, 2023. Reading Time: 2 minutes. Zero-debt companies do not have any outstanding debt obligations . These companies finance their operations or expansion plans via cash reserves, retained earnings or equity financing.

Who has the most debt on earth?

United States . The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%.

Who owns the most US debt?

Nearly half of all US foreign-owned debt comes from five countries. All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion) .

Apple's debt ratio of 31% (comparing its debt to assets) has actually come down in recent years . And it demonstrates that there are ample assets backing the company. The business generated an incredible $114 billion in operating income in fiscal 2023. But it only made $3.9 billion in interest payments.

How many people are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.

Is it good for a company to be debt free?

Having zero debt or very little debt can grant a company financial stability and autonomy . Debt can help to fuel growth and offer tax advantages, but it also carries risks like financial strain and potential insolvency.

11 Best Debt Free Stocks to Buy (2024)

In this article, we take a look at 11 best debt free stocks to buy. If you want to see more best debt free stocks to buy, go directly to 5 Best Debt Free Stocks to Buy.

There are different forms of debt.

Short term debt are financial obligations expected to be paid within a year. Long term debt is a financial obligation that matures over a year.

Debt can be an advantage when used correctly.

When used correctly, debt can help a company add value. If a company were to make an acquisition financed with debt and that acquisition generates substantially more profits than the cost of the purchase, the decision to take on debt would be a good one as long as adding the debt doesn't stress the balance sheet. If a company takes on debt to help finance an internal project that ends up generating a great return on investment, the decision would also be a good one as long as the company's debt remains within reasonable levels.

When used incorrectly, however, debt could destroy value. If there is a recession, a company's EBITDA might decrease and the company would have a harder time growing if it had more debt.

Companies With No Net Debt

Some companies can take on more debt than other companies. Some industries can also take on more debt than other industries. During recessions, a company might not be able to take on as much debt as during economic growth times. A company might not be able to take on as much debt if interest rates rise too much either as it would mean too much interest rate payments.

Given the high inflation, the Federal Reserve has increased interest rates substantially in 2022. As a result, the cost of issuing new debt now is higher than what it was in the beginning of last year. Given the higher cost of debt, some companies may not want as much debt on their balance sheets as before. Some companies previously viewed taking on debt as potentially advantageous given that the cost of debt was so cheap when interest rates were really low. For those of you interested, check out15 Countries with Lowest Interest Rates.

While there is a variation in terms of what's an acceptable level of debt for a company or industry, generally companies with no net debt and substantial cash flows have more flexibility than similar companies with more debt.

Methodology

For our list of 11 Best Debt Free Stocks to Buy, we screened for stocks with zero debt to equity ratio and zero long term debt to equity ratios according to Finviz.com. We also included Meta Platforms, Inc. (NASDAQ:META) since the company has more cash than debt on its balance sheet.

We then filtered the list to include companies that have done relatively well in terms of their long term stock performance.

We then ranked the stocks based on the number of hedge funds in our database that owned shares of the same stock at the end of the third quarter.

11. Community Bank System, Inc. (NYSE:CBU)

Number of Hedge Fund Holders: 14

Community Bank System, Inc. (NYSE:CBU) is a bank with over 210 customer facilities across upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. With assets of more than $15.5 billion, the regional bank is among the United States' 125 largest banking institutions. According to FINVIZ, Community Bank System, Inc. (NYSE:CBU) has a debt to equity ratio of 0 and a long term debt to equity ratio of 0, giving the bank's management flexibility in terms of capital allocation.

In the third quarter 2022, Community Bank System, Inc. (NYSE:CBU) reported net income of $0.90 per fully diluted share, compared to net income of $0.83 per fully diluted share in the third quarter of 2021. Return on assets was 1.24% and return on equity was 11.49%. Community Bank System, Inc. (NYSE:CBU)'s total loans rose 4.9% year over year and the bank realized a net interest margin of 3.03% up 29 basis points from Q3 2021.

Although shares of the stock are down from their highs in 2021, Community Bank System, Inc. (NYSE:CBU) stock has more than doubled from 2013.

Alongside Arista Networks, Inc. (NYSE:ANET), Chipotle Mexican Grill, Inc. (NYSE:CMG), and Meta Platforms, Inc. (NASDAQ:META), Community Bank System, Inc. (NYSE:CBU) is a stock with no net debt worthy of consideration for long term investors.

10. Eastern Bankshares, Inc. (NASDAQ:EBC)

Number of Hedge Fund Holders: 17

Eastern Bankshares, Inc. (NASDAQ:EBC) is a regional bank ranking #10 on our list of 11 Best Debt Free Stocks to Buy given 17 hedge funds in our database of 920 funds held shares at the end of Q3.

The Boston based bank, which has substantial operations in Massachusetts and New Hampshire, has a debt to equity ratio of 0 and a long term debt to equity ratio of 0.

Although shares have declined from their 2021 highs, Eastern Bankshares, Inc. (NASDAQ:EBC) shares are still well above their initial public offering price of $10 a share.

In terms of the future, analysts expect earnings growth given consensus EPS estimates of $1.33 per share in 2022, $1.61 per share in 2023, and $1.77 per share in 2024. Shares of Eastern Bankshares, Inc. (NASDAQ:EBC) have a forward P/E ratio of 10.95 and dividend yield of 2.27% as of January 17.

9. Prosperity Bancshares, Inc. (NYSE:PB)

Number of Hedge Fund Holders: 19

Unlike many other stocks,Prosperity Bancshares, Inc. (NYSE:PB) shares haven't declined that much versus the market. While the S&P 500 is down 12.81% in the last year,Prosperity Bancshares, Inc. (NYSE:PB) stock has declined only 6.23% in the last twelve months.In that time period, Prosperity Bancshares, Inc. (NYSE:PB) has also paid a dividend, which currently has a dividend yield of 2.95%.

When it comes to debt, Prosperity Bancshares, Inc. (NYSE:PB) has been fairly conservative given the bankhas a debt to equity ratio of 0 and a long term debt to equity ratio of 0.

As a regional bank in the Texas and Oklahoma area, the local economies in the states have been strong so far and the rising interest rates have helped Prosperity Bancshares, Inc. (NYSE:PB)'s net interest income.

In addition to the dividend, shares of Prosperity Bancshares, Inc. (NYSE:PB) have rallied over 50% from the beginning of 2013.

8. Commerce Bancshares, Inc. (NASDAQ:CBSH)

Number of Hedge Fund Holders: 19

Commerce Bancshares, Inc. (NASDAQ:CBSH) is a regional bank that provides full service banking services across the Midwest. In the third quarter, the bank earned $1.02 per share compared to $0.99 per share in the same quarter of last year. For the period, Commerce Bancshares, Inc. (NASDAQ:CBSH) had an efficiency ratio of 55.19%, a return on average equity of 17.84% and a return on total average assets of 1.48%.

Thanks to earnings growth, Commerce Bancshares, Inc. (NASDAQ:CBSH) shares have more than doubled from 2013 and the bank also has financial flexibility given its debt to equity ratio of 0 and its long term debt to equity ratio of 0.

7. Columbia Sportswear Company (NASDAQ:COLM)

Number of Hedge Fund Holders: 20

Columbia Sportswear Company (NASDAQ:COLM) doesn't have any debt payments given it has a debt to equity ratio of 0 and a long term debt to equity ratio of 0 according to FINVIZ.com. Given its debt flexibility, the apparel maker has more opportunities at M&A if it chooses to.

In addition to having financial flexibility, Columbia Sportswear Company (NASDAQ:COLM) has said its goal is to maintain a strong balance sheet and to be disciplined at capital allocation. The company also plans to return at least 40% of free cash flow to shareholders through dividends and share repurchases. Although shares ofColumbia Sportswear Company (NASDAQ:COLM) are down slightly in the last year, the stock has more than doubled from 2013.

6. First Hawaiian, Inc. (NASDAQ:FHB)

Number of Hedge Fund Holders: 22

First Hawaiian, Inc. (NASDAQ:FHB) is a regional bank in Hawaii with a debt to equity ratio of 0 and a long term debt to equity ratio of 0. Although the stock fell substantially during the pandemic given tourism makes up a substantial part of Hawaii's economy, shares of the bank have largely rebounded from their 2020 lows and are higher than their 2016 IPO price of $23 per share. 22 hedge funds in our database owned shares of First Hawaiian, Inc. (NASDAQ:FHB) at the end of the third quarter, ranking the bank #6 on our list of 11 Best Debt Free Stocks to Buy.

Like First Hawaiian, Inc. (NASDAQ:FHB), Arista Networks, Inc. (NYSE:ANET), Chipotle Mexican Grill, Inc. (NYSE:CMG), and Meta Platforms, Inc. (NASDAQ:META) are stocks with no net debt worthy of consideration for long term investors.

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