Market cap (billions): $1.5
P/E ratio*: 22
Return on assets: 15%
Free cash flow** (millions): $82
As the telecom industry switches to high-speed networks, Adtran's products will be in high demand. Revenue and earnings for the networking and communications equipment firm are
expected to grow by an average of 9% and 13%, respectively, over the next three years.
Adtran also has the balance sheet to handle turmoil in the telecom sector. Though it carries $50 million in debt, that is more than offset by $300 million in excess cash. And the
company generates a lot of free cash flow.NEXT: SMALL WONDERS: AVX