underleveraged

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Underleveraged

Describing a company with too little debt. While it sounds strange, a company may be underleveraged because interest on bonds are usually tax deductible for the issuing company; thus, a bond issue can create higher earnings per share for stockholders. There is no metric for determining when a company is underleveraged and investors decide on it based on their personal perceptions.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

underleveraged

Of, relating to, or being a firm that has insufficient debt in its capital structure. Because bond interest is deductible for tax purposes and is generally fixed in amount for a long period of time, some use of debt can often result in greater earnings per share for stockholders. Determining whether a company is underleveraged is usually a matter of opinion.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
However, many companies have little visibility into their external spend in a detailed and holistic manner; it is fragmented, managed in silos by disparate stakeholder groups, and under-leveraged as a result.
Design is an under-leveraged tool, one with the power to cause a reaction, Maute declares.
We often hear this anecdotally from well-known leaders, yet most leadership development efforts do not connect "negative" experiences explicitly to capacity building and growth, therefore leaving their effects under-leveraged and untended.
"We believe that housewares is still under-leveraged in the grocery world generally and that there is still room for growth," says Perry Reynolds, vice president, global trade development for the International Housewares Association, based in Rosemont, 111.
At its fair value, the stock would be valued at 26.4x PER, 3.3x EV/EBITDA, and 1.2x EV/EBITDA (based on 2014 estimates), Mubasher said, assessing the company as under-leveraged with a net debt-to-EBITDA ratio of 0.8x at end of June versus 1.5-2x for Mena telcos.
"But our headquarters are based here, and there's a massive amount of talent that's under-leveraged."
Finally, in the fifth part of our strategy, we've identified parts of the portfolio that were under-invested or under-leveraged. We've identified that either as countries or segments.
Banks currently sit on millions of records with this information--and it mostly sits unused and under-leveraged.
Existing clients are your best -- and often most under-leveraged -- source of referrals.
I have yet to find a long-term care community that doesn't have at least five under-leveraged facets of its marketing system.
If we take an optimistic stance and assume a relatively stable market, our top picks are Raspadskaya Co a highly profitable, under-leveraged pure coking coal producer Co and KTK, a pure steam-coal producer with good production growth and a cut-clear strategy to diversify its export sales by raising HVA production