Why Guangshen Railway Is Poised to Keep Chuggin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese railroad operator Guangshen Railway (NYSE: GSH  ) has earned a coveted five-star ranking.

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

Guangshen facts

Headquarters (founded)

Shenzhen, China (1996)

Market Cap

$3.7 billion

Industry

Railroads

Trailing-12-Month Revenue

$2.4 billion

Management

General Manager Shen Yi (since 2008)

Chief Accountant Tang Xiangdong (since 2008)

Return on Equity (average, past 3 years)

6.4%

Cash/Debt

$870.8 million / $555.6 million

Dividend Yield

2.7%

Competitors

Cathay Pacific Airways

China Southern Airlines

MTR

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

On CAPS, 97% of the 738 members who have rated Guangshen believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, henbrobrice, succinctly summed up the Guangshen bull case for our community:

With due diligence and the necessity of rail in a growing economy, I think this should be a solid play. Its dividends (given on a yearly basis) have increased or been maintained for 5 straight years. Its P/E ratio is less than 16 so it has been fairly valued in my estimation.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Guangshen may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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 TrackPoisedTo CAPS account.


Read/Post Comments (1) | Recommend This Article (0)

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.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2329434, ~/Articles/ArticleHandler.aspx, 12/19/2014 10:11:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement