Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese solar cell specialist JA Solar Holdings (Nasdaq: JASO ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at JA Solar's business and see what CAPS investors are saying about the stock right now.
JA Solar facts
|Headquarters (Founded)||Shanghai, China (2005)|
|Market Cap||$1.1 billion|
|Trailing-12-Month Revenue||$1.79 billion|
CEO Dr. Peng Fang (since 2010)
CFO Ming-Wai Chung (since 2009)
|Return on Equity (Average, Past 3 Years)||13.1%|
|Cash/Debt||$348.5 million / $418.6 million|
Trina Solar (NYSE: TSL )
Suntech Power (NYSE: STP )
Yingli Green Energy (NYSE: YGE )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 1,637 members who have rated JA Solar believe the stock will outperform the S&P 500 going forward. These bulls include MRBillsnutjob and All-Star Staka, who is ranked in the top 2% of our community.
About two months ago, MRBillsnutjob tapped JA Solar as a cheap way to get some sun: "The valuation on this stock seems to be low considering the rest of the industry. I feel it is a sleeper that could easily go to 14 dollars in a year. P/E is ridiculously low earnings are good they have beat forecasts for a few times in a row."
In fact, JA Solar currently sports a forward P/E of just 5. That represents a discount to competitors like Trina (6.7), Suntech (8.0), and Yingli (8.0).
CAPS All-Star Staka expands on JA Solar as a stock priced for imperfection:
- Huge growth, good margins, low P/E -> cheap stock.
- Industry with long-term growth potential.
- They are the price / quality leaders. Should ensure them a growing market share.
- Will profit from higher oil prices due to peak oil although this is a long-term trend which might not hold short-term.
- A lot of the negativity (see below) already priced into the stock.
- China growth could go on for some years or could collapse any time due to the many existing bubbles and inefficiencies. ...
- Biggest market is Europe which will suffer from cuts in subsidies which might create a supply overhang of solar cells. Similar situation with the US market.
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