Debt accumulation can quickly get out of hand for a company. And when this is coupled with a steady decline in the top line for a three, or more, year period, it’s a recipe for financial disaster. This is what’s facing the stocks on our list today, and if you’re a shareholder you’re likely hoping for a corporate restructuring.
Coach Inc. (NYSE: COH) – $33.08
Apparel & Accessories Retailers
Coach, Inc. is a design house of modern luxury accessories and lifestyle collections. The Company offers premium lifestyle accessories to a loyal and engaged customer base and provides consumers with products that use a broad range of leathers, fabrics and materials. The Company’s operates in two reportable segments: North America, which includes sales to North American consumers through Coach-operated stores and sales to wholesale customers, and International, which includes sales to consumers through Coach-operated stores and concession shop-in-shops and sales to wholesale customers and distributors in approximately 35 countries.
- Market Cap: $9,089,853,322
- Total Debt (LFQ): $896,700,000
- Debt Growth (2 year CAGR): $5.30
- Revenue Growth (2 year CAGR): -7.1%
General Motors Co. (NYSE: GM) – $31.01
Auto & Truck Manufacturers
General Motors Company (General Motors) designs, builds and sells cars, trucks and automobile parts across the world. The Company also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). The Company’s four automotive segments include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA).
- Market Cap: $50,128,807,882
- Total Debt (LFQ): $48,258,000,000
- Debt Growth (2 year CAGR): $0.62
- Revenue Growth (2 year CAGR): -23.6%
Chevron Corp. (NYSE: CVX) – $93.78
Oil & Gas Refining and Marketing
Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates. The Company operates through two segments: Upstream and Downstream. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transporting crude oil through international oil export pipelines; transporting, storing and marketing natural gas, and operating a gas-to-liquids plant. The Company’s Downstream operations primarily consist of refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car, and manufacturing and marketing commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives.
- Market Cap: $175,937,494,641
- Total Debt (LFQ): $33,933,000,000
- Debt Growth (2 year CAGR): $0.55
- Revenue Growth (2 year CAGR): -10.4%
Lions Gate Entertainment Corp. (NYSE:LGF) – $36.33
Entertainment Production
Lions Gate Entertainment Corp. (Lionsgate) is a global entertainment company with a diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales. The Company operates in two segments: Motion Pictures and Television Production.
- Market Cap: $5,319,021,747
- Total Debt (LFQ): $1,315,070,000
- Debt Growth (2 year CAGR): $0.247
- Revenue Growth (2 year CAGR): -5.9%
Mosaic Co. ((NYSE: MOS) – $44.91
Agricultural Chemicals
The Mosaic Company is a producer and marketer of concentrated phosphate and potash crop nutrients. The Company is a single source supplier of phosphate and potash-based crop nutrients and animal feed ingredients. It operates in two segments. The Phosphates segment owns and operates mines and production facilities in Florida, which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana, which produce concentrated phosphate crop nutrients. The Potash segment owns and operates potash mines and production facilities in Canada and the United States, which produce potash-based crop nutrients, animal feed ingredients and industrial products.
- Market Cap: $16,467,108,275
- ReTotal Debt (LFQ): $3,826,600,000
- Debt Growth (2 year CAGR): $0.91
- Revenue Growth (2 year CAGR): -8.9%
