Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas pipeline operator Transportadora de Gas Del Sur (NYSE: TGS ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Transportadora's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Buenos Aires, Argentina (1992)|
|Market Cap||$429.0 million|
|Trailing-12-Month Revenue||$449.7 million|
|Management||CEO Carlos Seijo (since 2009)
CFO Gonzalo Olivera (since 2007)
|Return on Equity (average, past 3 years)||6.6%|
|Cash/Debt||$55 million / $385.5 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 262 members who have rated Transportadora believe the stock will outperform the S&P 500 going forward.
Transportadora de Gas Del Sur is a very profitable and undervalued company, in spite of the world glut of natural gas. The shares are selling below book, they have plenty of cash on hand, profit margins are good. The only negative is that they simply cannot sustain the dividend at its current absurd level. The yield *must* drop down to no more than about 10% to be sustainable. But hey, an undervalued company in a hated industry that pays 10%? Sign me up.
If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its four-star rating, Transportadora may not be your top choice.
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