Top 25 Stocks PPD

I saw today that there were 3 new stocks on the top 25 list (new to the top 25 that is). I thought that this weekend that I would do a little diligence on two of them,

PPD -this is a rather unique stock. They provide pre-paid legal services. I am not sure if anyone else does this, though I have seen some adds with Robert Shapiro selling Legal Zoom dot com, which might have some similar elements. I suspect most people don't want to trust the internet for legal services, they'd rather be face-to-face with an attorney. I know I would.

I have decided that the biggest question to ask regarding any MFI stock is whether they can replicate or improve last year's earnings. If they can't do that, then the follow-up question is would you still buy the stock with lowered earnings? Here is my calc of the ratios for PPD:

		ppd
+	Operating Income After Depreciation	94.43
-	Minority Interest - Income Account	-
=	Income for Calculation	94.43
	Market Cap Yahoo	528,230
	Share Price	43.44
+	Market Cap Calc	528.23
+	Preferred Capital	-
+	Debt in Current Liabilities	18.26
+	Long-Term Debt	51.86
	Cash and Short-Term Investments	32.17
-	Excess Cash	11.89
=	Enterprise Value	586.47
+	Property Plant and Equipment - Net	56.79
+	Receivables	5.64
+	Inventories	1.56
+	Other Current Assests	28.17
+	Working Cash	20.28
-	Accounts Payable	15.41
-	Current Liabilities - Other	40.24
=	Invested Capital	56.79
	Earnings Yield	16%
	ROIC	166%

Obviously strong numbers, else would not be in top 25. They are trading at $43.44 with a 52 week range of $39.45 to $71.49. Looking at their balance sheet, they have $52m of debt, down from $70m a year ago. They cover their debt payment over 20x with income, so I don't think that is a major concern.

Their revenue has been very flat the past 5 quarters. In the current econmic environment, that isn't so bad. They have done a great job managing expenses, so not much expense ratio pressure.

It looks like no analysts follow the company, so we can't get a peg on whether they think the company will continue to make money.

They are actively buying back their stock with free cash flow and they are actually reducing share count ( down in past year from 13.348m to 12.116m) and plans in the hopper to buyback another million.

I like this company and their business model. I'd rate them a buy. They seem like a classic MFI stock. Cheap and a good company that could grow with little additional capital. What do other people think?