Cash flow is so important to any business that if a company doesn’t have enough money to sustain its operations it must raise funds through equity or debt in order to survive. Publicly-traded companies selling below 1.0x revenues usually signify either low profitability margins (therefore flowing little income to the bottom line), or a sign of poor future growth (expecting to not generate much revenue in the future). This could include the companies on our list today.
Liquidity Services Inc. (NASDAQ: LQDT) – $7.50
IT Services & Consulting
Liquidity Services, Inc., is an auction marketplace for surplus and salvage assets. The Company enables buyers and sellers to transact in an automated online auction environment offering over 500 product categories. Its marketplaces provide professional buyers access to a global, organized supply of surplus and salvage assets presented with digital images and other relevant product information.
- Market Cap: $291,710,762
- EV/Revenue: 0.3x
- Free Cash Flow (2014): $4,675,450
- Total Debt (LFQ): $0
Read More: 5 Small Caps with Growing Cash Flows and a 7%+ Dividend Yield
Cervus Equipment Corp. (TSX: CVL) – $13.50
Heavy Machinery & Vehicles
Cervus Equipment Corporation is a Canada-based company engaged in the sale, after-sale service and maintenance of agricultural, construction and industrial equipment. The Company also provides equipment rental, primarily in the construction and industrial equipment segment. It operates 48 John Deere agricultural equipment, Bobcat and JCB construction equipment and Clark, Sellick, Doosan material handling equipment and Peterbilt truck dealerships in 48 locations with 34 locations in Western Canada and nine locations on the north island of New Zealand and five locations in Victoria, Australia.
- Market Cap: $206,572,806
- EV/Revenue: 0.3x
- Free Cash Flow (2014): $43,435,000
- Total Debt (LFQ): $191,442,000
Essendant Inc. (NASDAQ: ESND) – $33.26
Business Support Supplies
Essendant Inc., formerly United Stationers Inc., is a wholesale distributor of workplace essentials. The Company stocks an assortment of over 160,000 products in categories, including technology products, traditional office products, office furniture, janitorial and breakroom supplies, industrial supplies, and automotive aftermarket tools and equipment. It sells its products through a national distribution network of about 77 distribution centers to over 30,000 resellers, who in turn sell directly to end consumers.
- Market Cap: $1,728,835,695
- EV/Revenue: 0.4x
- Free Cash Flow (2014): $60,575,090
- Total Debt (LFQ): $825,868,696
Read More: 5 U.S. Stocks with Free Cash Flow Growth of 70%+
Hyster-Yale Materials Handling Inc. (NYSE: HY) – $60.76
Heavy Machinery & Vehicles
Hyster-Yale Materials Handling, Inc. is an integrated designer, engineer, manufacturer, seller and servicer of lift trucks and aftermarket parts. The Company, along with its subsidiaries, NACCO Materials Handling Group, Inc., provides lift trucks and aftermarket parts marketed under the Hyster and Yale brand names.
- Market Cap: $1,322,269,838
- EV/Revenue: 0.4x
- Free Cash Flow (2014): $59,832,700
- Total Debt (LFQ): $67,076,670
Calfrac Well Services Ltd. (TSX: CFW) – $4.53
Oil Related Services and Equipment
Calfrac Well Services Ltd. is a provider of oilfield services in Canada, the United States, Russia, Mexico, Argentina and Colombia, including hydraulic fracturing, coiled tubing, cementing and other well stimulation services. The Company operates in four segments: Canadian, United States, Russian and Latin America.
- Market Cap: $451,712,182
- EV/Revenue: 0.5x
- Free Cash Flow (2014): $39,920,000
- Total Debt (LFQ): $821,348,000
Source: Thomson Reuters
Net Debt = Total Debt – Cash and Short Term Investments
LTM – Last Twelve Months
LFQ – Last Fiscal Quarter
Y/Y – Year over Year
YTD – Year to Date
