Why SodaStream Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, home beverage carbonation system specialist SodaStream International (NASDAQ: SODA  ) has received a distressing two-star ranking.

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

SodaStream facts

   

Headquarters (founded)

Airport City, Israel

Market Cap

$1.0 billion

Industry

Household appliances

Trailing-12-Month Revenue

$436.3 million

Management

CEO Daniel Birnbaum (since 2007)

CFO Daniel Erdreich (since 2007)

Return on Equity (average, past 3 years)

16.2%

Cash/Debt

$62.1 million / $0

Competitors

Vikingsoda

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

On CAPS, 16% of the 736 members who have rated SodaStream believe the stock will underperform the S&P 500 going forward.

Earlier this year, one of those Fools, All-Star starpark88, succinctly summed up the SodaStream bear case for our community:

Buying a 2L at a convenience store is easier, and cheaper than dealing with stocking up on syrup and CO2. Environmental minded folks may be happy to pay to save the environment, but why deal with the hassle when you can throw your Coke 2L in the recycle bin and "set the bubbles free." Cool device though. I just don't see mass appeal.

Of course, there are two sides to every investment story, and SodaStream's carbonation technology may very well disrupt the soda industry. The Motley Fool's new premium report on SodaStream explains the opportunities, as well as the risks, in the company. The report comes with a year's worth of updates, so just click here to get started.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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