Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, private equity firm American Capital (Nasdaq: ACAS ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at American Capital's business and see what CAPS investors are saying about the stock right now.
American Capital facts
|Headquarters (founded)||Bethesda, Md. (1986)|
|Market Cap||$3.6 billion|
|Trailing-12-Month Revenue||$602.0 million|
|Management||Founder/Chairman/CEO Malon Wilkus
CFO John Erickson
|Return on Equity (average, past 3 years)||27.1%|
|Cash/Debt||$316.6 million / $988.0 million|
Fortress Investment Group LLC
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 2,054 of the members who have rated American Capital believe the stock will outperform the S&P 500 going forward.
[V]ery low P/B and P/E. They invest in corporate debt on a leveraged basis. They also manage [American Capital Agency] and [American Capital Mortgage] and manage some private equity funds and collect management fees from that. They also have a huge tax loss carryover.
They got burned really badly during the 2008 liquidity crisis and ever since then it's been trading at a major discount to book value. Too low, [in my opinion].
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