Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless services specialist Cellcom Israel (NYSE: CEL ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Cellcom's business and see what CAPS investors are saying about the stock right now.
Cellcom facts
| Headquarters (Founded) |
Netanya, Israel (1994) |
| Market Cap |
$2.3 billion |
| Industry |
Wireless telecom services |
| Trailing-12-Month Revenue |
$1.82 billion |
| Management |
CEO Nir Sztern (as of January 1, 2012)
CFO Yaacov Heen
|
| Return on Capital (Average, Past 3 Years) |
23.2% |
| Cash/Debt |
$532.5 million / $1.44 billion |
| Dividend Yield |
9.5% |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 542 members who have rated Cellcom believe the stock will outperform the S&P 500 going forward. These bulls include All-Star kristm, who is ranked in the top 0.5% of our community, and SpartanMAC.
This past summer, kristm listed several of Cellcom's positives:
High ROE, low PE. Cash flows growing, and margins improving. 5 star in Caps. Healthy dividend. Earnings quality looks good.
In fact, Cellcom boasts a robust three-year average operating margin of 27.7%. That's higher than that of much larger telecom plays like AT&T (NYSE: T ) (17.1%), Verizon (NYSE: VZ ) (17.2%), and Vodafone (NYSE: VOD ) (16.2%).
CAPS member SpartanMAC expands on the outperform argument:
[X] High dividend
[X] Profitable telecom business
[X] P/E ratio below 10
[X] Located in tech-savvy Israel, a country overlooked by many investors due to neighboring instability and little media attention.
[X] Has the iPhone.
Only concerns here are with the high taxes Israel charges on dividends, but for US investors those can be deducted from your own income tax filing.
What do you think about Cellcom, 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!
Interested in another easy way to track Cellcom? Add it to your watchlist.
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