5 Services Sector Stocks With A Very High Debt-to-Equity Ratio

The following five companies in the Services sector have the highest debt-to-equity ratios.  Note that this list excludes all companies whose market capitalization is less than $500 million.

  1. Sonic Corporation (NASDAQ:SONC):  The shares have traded in a 52-week range of $7.28 to $11.91 and most recently traded at $11.59 per share.  It has total debt of $537.84 million and a total debt to equity ratio of 1,431.18.  It holds $29.68 million in cash, has a current ratio of 0.59 and a book value per share of $0.61.  Its market capitalization in $716.88 million.  About this company: Sonic Corp. franchises and operates a chain of drive-in restaurants.  The Company currently has Company-owned and franchised restaurants, principally in the south central and southeastern United States.  Sonic’s restaurants offer made-to-order hamburgers and other sandwiches, as well as signature items.
  2. DineEquity Inc. (NYSE:DIN):  The shares have traded in a 52-week range of $24.92 to $60.11 and most recently traded at $55.41 per share.  The company has total debt of $1.86 billion and a total debt to equity ratio of 1,515.99.  It has $50.36 million in cash, a current ratio of 0.95, and a book value per share of $4.31.  Its market capitalization is $1.03 billion.  About this company:  DineEquity, Inc. and its subsidiaries develop, operate, and franchise family restaurants.  The Company’s restaurants feature pancakes, omelets, and other breakfast specialties, as well as lunch and dinner items.  The restaurants are primarily operated by franchisees in the United States, Canada, and Japan.
  3. Avis Budget Group Inc. (NYSE:CAR):  The shares have traded in a 52-week range of $8.57 to $19.49 per share and most recently traded at $18.90 per share.  It has $7.61 billion in debt and a total debt to equity ratio of 1,736.36.  It has $913 million in cash, a current ratio of 0.72, and a book value per share of $4.16.  Its market capitalization is $1.99 billion.  About this company:  Avis Budget Group, Inc. offers automobile and truck rental services.
  4. Sirius XM Radio Inc. (NASDAQ:SIRI):  The shares have traded in a 52-week range of $0.88 to $2.42 and most recently traded at $2.37 per share.  Its total debt is $3.09 billion, and its total debt to equity ratio is 1,035.88.  It has $433.70 million in cash, its current ratio is 0.40, and its book value per share is $0.08.  Its market capitalization is $9.39 billion.  About this company:  Sirius XM Radio Inc. broadcasts various channels of audio from its satellites.  The Company provides its services throughout the continental United States for a monthly subscription fee.  Sirius delivers various streams of commercial-free music in every genre, as well as streams of news, sports, weather, talk, comedy, and public radio.
  5. Consolidated Communications Holdings, Inc. (NASDAQ:CNSL): The shares have traded in a 52-week range of $16.31 to $19.50 and most recently traded at $18.88 per share.  It has total debt of $912.25 million and a total debt to equity ratio of 1,269.22.  It has $6.7.67 million in cash, a current ratio of 1.8 and a book value per share of $2.25.  Its market capitalization is $561.93 million.  About this company: Consolidated Communications Holdings, Inc. offers telecommunications services.  The Company offers local and long distance telephone, digital telephone, high-speed Internet access, and digital television services to individuals and businesses in Illinois, Pennsylvania, and Texas.

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

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