Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty tea retailer Teavana Holdings (NYSE: TEA ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Teavana's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Atlanta (1997)|
|Market Cap||$516.2 million|
|Trailing-12-Month Revenue||$177.5 million|
|Management||Founder/Chairman/CEO Andrew Mack
CFO Daniel Glennon
|Trailing-12-Month Return on Capital||132.1%|
|Cash/Debt||$20.0 million / $0|
Whole Foods Market
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 39% of the 75 members who have rated Teavana believe the stock will underperform the S&P 500 going forward.
P/E is 28 at time of writing and stock seems overvalued as growth will likely slow. Sales, while growing, should be higher for a microcap with such a high valuation. Hard to envision high end teas taking off without a luxurious [Starbucks]-style cafe experience to justify the price.
If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap growth play with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.