Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household appliance maker Whirlpool (NYSE: WHR ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Whirlpool's business, and see what CAPS investors are saying about the stock right now.
Whirlpool facts
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Headquarters (founded)
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Benton Harbor, Mich. (1906)
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Market Cap
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$2.13 billion
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Industry
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Appliances
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Trailing-12-Month (TTM) Revenue
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$18.91 billion
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Management
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Chairman/CEO Jeff Fettig (since 2004)
CFO Roy Templin (since 2004)
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Net Income Growth (average, last five years and TTM)
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3.5% and (34.7%)
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Competitors
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General Electric (NYSE: GE )
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CAPS members bearish on WHR also bearish on
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Citigroup (NYSE: C )
General Motors (NYSE: GM )
Centex (NYSE: CTX )
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CAPS members bullish on WHR also bullish on
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Bank of America (NYSE: BAC )
Johnson & Johnson (NYSE: JNJ )
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.
Over on CAPS, 57 of the 278 members who have rated Whirlpool -- some 20% -- believe the stock will underperform the S&P 500 going forward. These bears include culatr and TSIF.
In January, culatr taught our community a simple equation for Whirlpool's expected performance: "bad economy and bad housing market = down on white goods."
In a pitch from last week, TSIF takes a bearish whirl of his own:
… Whirlpool is generally innovative. Whirlpool, however, can only sell so many appliances in this economy. Yes some will break, yes some people are still buying houses, yes "honeys" usually get a few things they want, yes the price is down considerably already, but folks this is a recession. It won't end quickly. The Whirlpool repair man may get more calls to keep things running, but new appliances aren't on the shopping list with the homes about to be or in bankruptcy.
… Margins are sub 5%, cash flow is weak, quarterly growth is negative, repeat, rinse, repeat and Whirlpool won't get out of this for quite awhile without getting faded first and a few passes through the wringer.
I don't know about you, but Whirlpool strikes me as one of those name-brand businesses that should be owned at the right price. Sure, it's suffering now (what isn't?), but as Whirlpool bull DP2CNC puts it, "I know I'm not going down to the river to beat my laundry against the rocks. … Get it while it's on sale."
With the stock off 67% over the last year, and currently sitting at a paltry PEG of 0.76, Whirlpool looks more like an unloved investment ready to shine, rather than sink.
But what do you think about Whirlpool, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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