Based on the aggregated intelligence of 145,000-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's business and see what CAPS investors are saying about the stock right now.
Guangshen facts
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Headquarters (Founded)
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Shenzhen, China (1996)
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Market Cap
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$1.68 billion
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Industry
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Railroads
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Trailing-12-Month Revenue
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$1.76 billion
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Management
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General Manager Shen Yi (since 2008)
Chief Accountant Tang Xiangdong (since 2008)
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Return on Equity (Average, Past 3 Years)
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5.9%
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Cash/Debt
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$319.1 million / $568 million
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Dividend Yield
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2.9%
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Other Highly Rated Railroad Stocks
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Canadian National Railway (NYSE: CNI )
Union Pacific (NYSE: UNP )
Norfolk Southern (NYSE: NSC )
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CAPS Members Bullish on GSH Also Bullish on
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Aluminum Corp. of China (NYSE: ACH )
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CAPS Members Bearish on GSH Also Bearish on
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Baidu.com (Nasdaq: BIDU )
Citigroup (NYSE: C )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96.7% of the 580 members who have rated Guangshen believe the stock will outperform the S&P 500 going forward. These bulls include globalsailor and All-Star JakilaTheHun, who is ranked in the top 0.1% of our community.
Just last week, globalsailor highlighted Guangshen as a cheap way to steam ahead: "I didn't realize that this company was trading at 10% below book value. It should grow with the Chinese economy and if there is a crash the assets should be pretty safe. Railways are the best way to cash in on environmental initiatives."
In a pitch from three days later, JakilaTheHun also helped Fools stay on track. Here's an excerpt:
[Guangshen] provides rail transportation services and most of their revenues come from passenger rail. They are situated in China and have high-speed rail services, as well. Given my long-term belief that the increasing oil scarcity, concerns about clean energy, and energy independence (in China, too!) will dominate over the next several decades, [Guangshen] seems like a relatively good candidate for growth, as well. ... So, this is both a value and a growth pick, that also happens to be a good defensive stock paying a dividend. That's the best of all worlds right now.
What do you think about Guangshen Railway, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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