Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas service provider Core Laboratories (NYSE: CLB ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Core Labs' business and see what CAPS investors are saying about the stock right now.
Core Labs facts
| Headquarters (Founded) |
Amsterdam (1936) |
| Market Cap |
$5.4 billion |
| Industry |
Oil and gas equipment and services |
| Trailing-12-Month Revenue |
$872.05 million |
| Management |
Chairman/CEO David Demshur
CFO Richard Bergmark |
| Return on Equity (Average, Past 3 Years) |
69.1% |
| Cash/Debt |
$17 million / $239.6 million |
| Dividend Yield |
0.9% |
| Competitors |
Baker Hughes (NYSE: BHI )
Halliburton (NYSE: HAL )
Schlumberger (NYSE: SLB ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 556 members who have rated Core Labs believe the stock will outperform the S&P 500 going forward. These bulls include jaymzrex and KnockoutMouse.
This past summer, jaymzrex listed several of Core Labs' positives:
Low asset model, durable competitive advantage against other consultants, proprietary products for horizontal drilling, high free cash flow, smart management. Prudent about finances, will not commit capital unless high guaranteed rate of return.
In fact, Core Labs boasts a whopping three-year average return on capital of 31.2%. That's much higher than that of competitors like Baker Hughes (8.4%), Halliburton (14.4%), and Schlumberger (9.8%).
CAPS member KnockoutMouse elaborates on the bull case:
1. A clear leader in an industry with high barriers to competition.
2. Well managed and efficient: with a high ROIC and profit margin.
3. Strong balance sheet, free cash flow adequate to fund its dividend, and well managed debt.
4. A history of substantial dividends and dividend growth. ...
Core Labs is an oil field service company that allows producers to more efficiently extract oil from reservoirs. A good play on the dwindling oil output expected with the Peak Oil Theory.
What do you think about Core Labs, 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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