Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, IT-products specialist Ingram Micro
With that in mind, let's take a closer look at Ingram's business and see what CAPS investors are saying about the stock right now.
Ingram facts
|
Headquarters (Founded) |
Santa Ana, Calif. (1979) |
|
Market Cap |
$2.96 billion |
|
Industry |
Technology distributors |
|
Trailing-12-Month Revenue |
$29.5 billion |
|
Management |
CEO Gregory Spierkel (since 2005) |
|
Return on Capital (Average, Past 3 Years) |
7.2% |
|
Cash/Debt |
$911 million / $380 million |
|
Competitors |
Arrow Electronics |
|
Key Suppliers |
Apple |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 91% of the 141 members who have rated Ingram believe the stock will outperform the S&P 500 going forward. These bulls include awallejr and All-Star mrindependent, who is ranked in the top 1% of our community
Two months ago, awallejr listed several good reasons to buy into Ingram: "Solid balance sheet, a billion in cash, accretive acquisitions, and pushing growth in emerging markets."
In a pitch from two days ago, mrindependent expands on the stock as a balance-sheet bargain:
Current p/sales ratio is 0.10, which is below its 5 year average p/sales ratio of 0.12 and very low compared to most other stocks. Current p/bv is 0.99. The p/bv ratio is significant here because the company's assets consist of cash and working capital. There is no goodwill or intangibles- and PP&E is insignificant. This means that book value is not far from liquidation value. At 0.99 times book value, the downside is limited.
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