1-Star Stocks Poised to Plunge: Tenneco?

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto parts supplier Tenneco (NYSE: TEN) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Tenneco's business and see what CAPS investors are saying about the stock right now.

Tenneco facts

Headquarters (Founded)	Lake Forest, Ill. (1987)
Market Cap	$727.2 million
Industry	Auto parts and equipment
Trailing-12-Month Revenue	$4.78 billion
Management	CEO Gregg Sherrill (since 2007) CFO Kenneth Trammell (since 2003)
Return on Capital (Average, Past 3 Years)	6.6%
Cash / Debt	$111 million / $1.52 billion
6-Month Return	1,450%
Competitors	BorgWarner (NYSE: BWA) American Axle & Manufacturing (NYSE: AXL)
CAPS Members Bearish on TEN Also Bearish on	Dollar Thrifty Automotive (NYSE: DTG) Ford Motor (NYSE: F)
CAPS Members Bullish on TEN Also Bullish on	General Electric (NYSE: GE) Citigroup (NYSE: C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 44.5% of the 146 members who have rated Tenneco believe the stock will underperform the S&P 500 going forward. These bears include All-Stars BuffySoro and mrindependent, both of whom are ranked in the top 2% of our community.

Last month, BuffySoro warned that Tenneco's stock seemed to be speeding out of control:

[T]hey've had [negative] FCF 7 years out of the last 10. [T]here's not much more debt they can raise, as their [liabilities] = $3billion, its mkt cap is around $700m … credit is tight already. … [R]ecent run up because of speculation about green [energy] etc and big (irrational) money jumping on a running train that is about to revert.

In a pitch from two days ago, mrindependent also attempts to steer Fools away:

Tenneco is an automotive supplier that is currently losing money. Its balance sheet is a mess. Despite these facts, Tenneco has massively outperformed the market in the last year, six months and three months. I think the sustainable debt for Tenneco is approximately $600 million, but Tenneco's actual net debt (i.e. debt minus cash) is $1.3 billion. This leaves $700 million that must be paid from future earnings (if any). In its best years, Tenneco earns about $50 million. Insider selling is significant in the $11 to $17 range.

What do you think about Tenneco, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!