Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Indian consulting giant Infosys Technologies (Nasdaq: INFY ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Infosys' business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Bangalore, India (1981)|
|Market Cap||$35.6 billion|
|Industry||IT consulting and other services|
|Trailing-12-Month Revenue||$6.04 billion|
Co-Founder/CEO S. D. Shibulal
CFO V. Balakrishnan
|Return on Equity (Average, Past 3 Years)||29.4%|
|Cash/Debt||$3.8 billion / $0|
Accenture (NYSE: ACN )
Hewlett-Packard (NYSE: HPQ )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 1,156 members who have rated Infosys believe the stock will outperform the S&P 500 going forward. These bulls include chocoswiss and All-Star huddaman, who is ranked in the top 5% of our community.
A few months ago, chocoswiss tapped Infosys as an honestly run opportunity: "Management practises practical, conservative and moral values in all decision makings. Good governance will pay-off in mid-long run."
Over the next five years, in fact, Infosys is expected to grow its bottom line at a brisk rate of 17% annually. That's faster than other IT consulting giants like Accenture (13%), HP (9%), and IBM (NYSE: IBM ) (11%).
CAPS All-Star huddaman elaborates on the Infosys bull case:
A long term secular trend is in favor of Infosys's and other IT outsourcing and BPOs. ... These company's are growing revenues at 12-25% rate annually. They require very little investment, and didn't really feel any pain during 2008-2009 slowdown. The long term secular up-trend trumped the recession down trend. A 24 P/E makes this company undervalued. Only major risk is weaker corporate governance standard in India. However, [Morningstar] gives this company stewardship grade of B, which is pretty good.
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