5 Cash Flow Positive Small Caps Selling Under 1x Revenue

Cash flow is so important to any business that if a company doesn't have enough money to sustain its operations it must raise funds through equity or debt in order to survive. Publicly-traded companies selling below 1.0x revenues usually signify either low profitability margins (therefore flowing little income to the bottom line), or a sign of poor future growth (expecting to not generate much revenue in the future). This could include the companies on our list today. Liquidity Services Inc. LQDT - $7.50 IT Services & Consulting Liquidity Services, Inc., is an auction marketplace for surplus and salvage assets. The Company enables buyers and sellers to transact in an automated online auction environment offering over 500 product categories. Its marketplaces provide professional buyers access to a global, organized supply of surplus and salvage assets presented with digital images and other relevant product information.

• Market Cap: $291,710,762
• EV/Revenue: 0.3x
• Free Cash Flow (2014): $4,675,450
• Total Debt (LFQ): $0

Cervus Equipment Corp. (TSX: CVL) - $13.50 Heavy Machinery & Vehicles Cervus Equipment Corporation is a Canada-based company engaged in the sale, after-sale service and maintenance of agricultural, construction and industrial equipment. The Company also provides equipment rental, primarily in the construction and industrial equipment segment. It operates 48 John Deere agricultural equipment, Bobcat and JCB construction equipment and Clark, Sellick, Doosan material handling equipment and Peterbilt truck dealerships in 48 locations with 34 locations in Western Canada and nine locations on the north island of New Zealand and five locations in Victoria, Australia.

• Market Cap: $206,572,806
• EV/Revenue: 0.3x
• Free Cash Flow (2014): $43,435,000
• Total Debt (LFQ): $191,442,000

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