Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, movie theatre operator Regal Entertainment
With that in mind, let's take a closer look at Regal's business and see what CAPS investors are saying about the stock right now.
Regal facts
| Headquarters (founded) | Knoxville, Tenn. (2002) |
| Market Cap | $2.2 billion |
| Industry | Movies and entertainment |
| Trailing-12-Month Revenue | $2.7 billion |
| Management | CEO Amy Miles (since 2009) CFO David Ownby (since 2009) |
| Return on Capital (average, past 3 years) | 10% |
| Cash/Debt | $253.0 million / $2.0 billion |
| Dividend Yield | 6% |
| Competitors |
AMC Entertainment Carmike Cinemas Cinemark Holdings |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 22% of the 190 members who have rated Regal believe the stock will underperform the S&P 500 going forward.
Earlier this month, one of those Fools, All-Star elkwingcaddis, succinctly summed up the bear case for our community:
Movie Theaters will slowly [go the] way of Blockbuster as Home Theater System prices drop and on-demand and streaming makes it easier to order movies at home. Could add other theaters but [Regal] seems to be seeing a larger drop in reveneues than others and has a high PE ratio and high dividend payout. If they have to cut their dividend in the future it would significantly impact their price.
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