Morningstar, Inc. (MORN), Panera Bread Co (PNRA): Companies With No Debt

Beauty pays

Specialty retailer Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) provides prestigious beauty products at a value price according to its website.

Last year, Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) increased revenue 25%; however, free cash flow declined 45% due to increased investments into the business. Its operating margins jumped to 13% versus 11% for 2011. Ulta’s return on equity stood at 22% as of last year.

In the most recent quarter, revenue increased 23% and free cash flow swung from a negative $12 million to $831,000 due to higher operating cash flow. Cash as a percentage of stockholder’s equity came in at 36%.

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) recently got a new CEO. The company plans to open 125 stores this year, consolidate membership loyalty programs, and revamp its e-commerce platform. Watch for these initiatives as well as any that the new CEO may come up with to move the company forward.

Conclusion

All three of these companies sport a high cash/no debt balance sheet. This will enable them to better weather tough times and to continue investing in their businesses through new products, customer experiences, and/or geographical expansion. They definitely deserve a place on your Motley Fool Watch List.

William Bias has no position in any stocks mentioned. The Motley Fool recommends Morningstar, Panera Bread, and Ulta Salon, Cosmetics & Fragrance. The Motley Fool owns shares of Panera Bread and Ulta Salon, Cosmetics & Fragrance.

The article A Look at 3 Companies With No Debt originally appeared on Fool.com.

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