Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Portugal Telecom (NYSE: PT ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Portugal Telecom's business and see what CAPS investors are saying about the stock right now.
Portugal Telecom facts
| Headquarters (Founded) |
Lisbon, Portugal (1994) |
| Market Cap |
$6.2 billion |
| Industry |
Integrated telecom services |
| Trailing-12-Month Revenue |
$6.24 billion |
| Management |
CEO Zeinal Bava (since 2008)
CFO Luis de Melo (since 2006)
|
| Return on Equity (Average, Past 3 Years) |
29.2% |
| Cash/Debt |
$4.8 billion / $16.9 billion |
| Dividend Yield |
12.3% |
| Competitors |
America Movil (NYSE: AMX )
Vodafone Group (Nasdaq: VOD )
|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 202 members who have rated Portugal Telecom believe the stock will outperform the S&P 500 going forward. These bulls include troikopasso and All-Star TSIF, who is ranked in the top 0.1% of our community.
Just last month, troikopasso tapped Portugal Telecom as an international income opportunity: "The company has a great dividend yield and the management is doing efforts to maintain the dividend. Although PT is a Portuguese company they have exposure to Africa and Brazil."
In fact, Portugal Telecom sports a whopping dividend yield of 12.9%. That's much higher than that of other foreign telecom plays like America Movil (1.3%), Vodafone (5.1%), and Telefonica (NYSE: TEF ) (10.2%).
CAPS All-Star TSIF expands on the outperform argument:
Portugal Telecom despite being in the dreaded Eurozone area of Portugal also operates in Brazil. Margins are decent for a telecom and the sell-off has them at 1.4 Book. $17 Billion in debt is typical of a telecom, but Portugal Telecom has managed to hold $4 Billion in cash as a serious cushion after selling off one division a year or so ago. ...
Overall a tricky one to value in a tricky economy in a tricky spot in the distressed Euro area. I like their growth potentials, especially in Brazil and at $7 they appear to be priced with a decent enough margin to warrant the risk/reward.
While they have had an erratic share price for years, I'd be looking to try to hold this one, especially if they stabilize before dividend time in May.
What do you think about Portugal Telecom, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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