Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, automotive retail chain Pep Boys - Manny, Moe & Jack (NYSE: PBY ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Pep Boys' business and see what CAPS investors are saying about the stock right now.
Pep Boys facts
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Headquarters (Founded)
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Philadelphia (1921)
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Market Cap
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$727.4 million
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Industry
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Automotive retail
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Trailing-12-Month Revenue
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$1.96 billion
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Management
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CEO Michael Odell (since 2008)
CFO Raymond Arthur (since 2010)
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Return on Equity (Average, Past 3 Years)
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2.4%
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Cash/Debt
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$107.25 million / $325.89 million
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Dividend Yield
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0.9%
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Competitors
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Advance Auto Parts (NYSE: AAP )
AutoZone (NYSE: AZO )
Monro Muffler Brake (Nasdaq: MNRO )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 80% of the 208 members who have rated Pep Boys believe the stock will outperform the S&P 500 going forward. These bulls include All-Star TMFDeej, who is ranked in the top 1% of our community, and meadornack.
Just last week, TMFDeej tapped Pep Boys as a tempting turnaround opportunity:
New management and the introduction of new, smaller-format stores should enable Pep Boys to improve its sector-worst margins. Tis better to purchase the company with the worst margins in its sector when there is a catalyst to improve them than to purchase the best-run company.
Currently, Pep Boys even sports a cheapish price-to-cash flow of 7.7. That represents a discount to listed rivals like Advance Auto (8.8), AutoZone (10.0), and Monro Muffler (16.1).
Late last month, CAPS member meadormack kindly updated Fools on the Pep Boys story:
According to recent news reports, Pep Boys has halted efforts to find a buyer for the company after failing to attract an acceptable offer. The company apparently had initial indications of interest in the $10-$11 range, though it had anticipated offers in the low teens. ... We believe that [Pep Boys] offers value for long-term investors based on the company's strong balance sheet, attractive end markets and the potential for leveraging its exposure to the low-price aftermarket and services segment.
What do you think about Pep Boys, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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