How confident are you that your portfolio can weather the current stock market storm?

If you’re using the "big three metrics" to track down your stocks, chances are, you’re pretty confident. That’s because those three metrics – book value, free cash flow and balance sheet health -- play a big role in determining just how long a company can stay afloat in rough waters. Stocks with the big three have little debt, plenty of cash to make up for recession sales slumps and aren’t overpriced.

Think that finding a company that meets those criteria is impossible in this market? Think again.

Stockpickr has created a portfolio of ten potentially recession-proof stocks that fit the “big three metric” mold. Each one trades below book, has positive free cash flows and little or no debt. Here is a look at five of the stocks in the 10 Stocks That Fit the Big Three Mold portfolio.

The Kyocera Corporation (KYO) is a Japan-based electronics manufacturer that’s known for its cell phones, digital cameras and flat-screen TVs. But the company’s real draw is its financials. KYO stands out because it's the biggest company of the group by market cap, yet still has a surprisingly low price-to-book ratio of 0.76 (anything under 1 is considered a cheap stock), an impressive $1.2 billion in free cash flows (the more, the better) and virtually no debt with a debt-to-equity ratio of 0.01 (a lower number means that less of the company was financed by borrowing, which is a good thing right now).

The pros agree. The PowerShares WilderHill Clean Energy ETF (PWB) owns KYO. A few of this exchange-traded fund’s other top holdings include Evergreen Solar (ESLR), Cypress Semiconductor (CY) and Applied Materials (AMAT).

Next on the list is TDK Corporation (TDK), another Japanese technology manufacturer. TDK produces recording media like burnable CDs and DVDs. In addition to a low P/E and modest dividend yield, TDK also has the recession-proof attributes we’re looking for: a price/book ratio of 0.51, free cash flows of $35.1 million and a debt/equity ratio of 0.16.

In keeping with out Pacific-Rim theme, Japan-based power tool manufacturer Makita (MKTAY) has been using the cash from its coffers to buy back shares -- 3,000,000 shares to be precise. Makita’s plump margins only add to this stock’s staying power. Plus, check out our big three metrics: Makita’s price/book is 0.86, has free cash flows of $142 million and the company’s debt/equity is 0.

Marvell Technology Group (MRVL) is a Barbados-based semiconductor company. MRVL is no slouch when it comes to their balance sheet. The company has almost $900 million in cash on hand -- enough to extinguish all of its long term debt today. Marvell’s price/book is 0.84, has free cash flows of $92 million and debt/equity of 0.08.

Marvell is also a pro favorite that can be found in the portfolios of Maverick Capital and seven others (including Citadel Investment Group, Eden Capital Management, and Tudor Investment). Two of Maverick’s other holdings include Blackberry-maker Research In Motion (RIMM) and Apple (AAPL).

Last but not least is Littelfuse (LFUS), a small-cap that makes fuses for electronic devices and cars. In addition to being debt-free LFUS saw earnings rocket 55% last year, making it an attractive play on all sides. Littelfuse’s price/book is 0.81, has free cash flows of $19 million and debt/equity of 0.10.

For the complete group of potentially recession-proof plays, check out the 10 Stocks That Fit the Big Three-Mold portfolio on Stockpickr.

Posted on Dec. 3, 2008