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Why GrafTech Is Ready to Rebound

By | More Articles
March 4, 2013 | Comments (2)

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, graphite products company GrafTech International (NYSE: GTI  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at GrafTech and see what CAPS investors are saying about the stock right now.

GrafTech facts

Headquarters (founded)

Parma, Ohio (1886)

Market Cap

$937.1 million

Industry

Electrical components and equipment

Trailing-12-Month Revenue

$1.3 billion

Management

Chairman/CEO Craig Shular

CFO Lindon Robertson

Return on Equity (average, past 3 years)

13.3%

Cash/Debt

$17.3 million / $571.1 million

Competitors

SGL CARBON

Showa Denko

Tokai Carbon

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 939 members who have rated GrafTech believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star joryko, succinctly summed up the GrafTech bull case for our community:

Recent sell-off presents a huge opportunity for long-term investors.

-P/B of only 0.7 and very manageable debt
-World leading supplier of graphite electrodes, make 15% of the world's supply
-No alternatives to these electrodes gives them a huge moat
-Faces competition from smaller companies, including China, who produces 65% of the world's supply
-Vertically integrated through its production of needle coke

Waiting to see a P/B closer to 1.5 before I would even consider selling this growing company.

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Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of GrafTech International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 04, 2013, at 10:59 AM, StarWitchDoctor wrote:

    who is the ticker guide for GTI?

  • Report this Comment On April 10, 2013, at 8:13 PM, rsinj wrote:

    As with all your articles that are a cookie cutter of this, GTI has not earned it's rating based on the aggregated intelligence of the 180,000 CAPS participants, only the 939 who rated GTI. Big difference, though you still don't seem to get it.

    ===

    -World leading supplier of graphite electrodes, make 15% of the world's supply

    -No alternatives to these electrodes gives them a huge moat

    -Faces competition from smaller companies, including China, who produces 65% of the world's supply

    ===

    How do they have a huge moat if 85% of the world's supply comes from others?

    If 65% comes from China, that's huge and you know they are doing it cheaper.

    Forward estimates are pretty ugly. Anyone who purchases shares before the coming earnings announcement is simply rolling the dice.

    Based on 2013 estimate of 32 cents/share and 2014 estimate of 56 cents/share, the shares are currently trading at a PE in the 20 to 25 range - and this is not a growth company.

    Shares are radically overvalued at this time. This is a bloated manufacturer out in the sticks. The shares are not worth looking at until they are below $5.

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Related Tickers

5/22/2013 9:56 AM
GTI $8.09 Down -0.18 -2.18%
GrafTech Internati… CAPS Rating: ****

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