Why FutureFuel Is Poised to Keep Popping

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chemicals and biofuels manufacturer FutureFuel (NYSE: FF  ) has earned a respected four-star ranking.

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

FutureFuel facts

Headquarters (Founded)

Clayton, Mo. (2005)

Market Cap

$546.3 million

Industry

Specialty chemicals

Trailing-12-Month Revenue

$366.8 million

Management

Chairman/CEO Paul Novelly
Principal Finance Officer Rose Sparks

Return on Equity (Average, Past 3 Years)

11.2%

Cash/Debt

$196.4 million / $0

Dividend Yield

3.3%

Competitors

Archer-Daniels Midland (NYSE: ADM  )
DuPont
(NYSE: DD  )
Renewable Energy Group
(NASDAQ: REGI  )

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

On CAPS, 97% of the 58 members who have rated FutureFuel believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, neocolonialist, succinctly summed up the FutureFuel bull case for our community:

"P/E is reasonable at < 15, they have no debt, they are amazingly diversified with a whole chemical side of the house (weed killer, detergent packet chemicals, etc), strong customers like Procter & Gamble (NYSE: PG  ) , they have a great dividend, and lots of cash for their size. What's not to like?"

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, FutureFuel may not be your top choice.

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Read/Post Comments (1) | Recommend This Article (3)

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  • Report this Comment On March 09, 2013, at 11:17 AM, funfundvierzig wrote:

    The lumbering DuPont conglomerate is hardly much of a fierce rival in biofuels. DuPont's lacklustre engineers and "scientists" has been toiling for years over over-priced, uneconomical corn cob "gasoline" and have yet to introduce a commercial-scale product into the marketplace.

    Pursuant to DuPont's corn cob "gasoline" model, bad mileage ethanol would be manufactured by stripping hundreds of thousands of fertile farm acres of rich organic material, corn stover, and exposing farmland to erosion and the costly necessity of additional irrigation and fertiliser (made of natural gas). Moreover, cattle and other livestock are deprived of winter foraging for food.

    ...funfun..

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