4-Star Stocks Poised to Pop: Innophos

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, phosphate producer Innophos (Nasdaq: IPHS) has earned a respected four-star ranking.

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

Innophos facts

Headquarters (founded)

Cranbury, N.J. (2004)

Market Cap

$238.74 million

Industry

Commodity chemicals

TTM Revenue

$934.8 million

Management

Chairman/CEO Randolph Gress (since 2004)
CFO Richard Heyse (since 2005)

Compound Annual Revenue Growth (over last three years)

20.4%

Dividend Yield

6.0%

Competitors

Mosaic (NYSE: MOS)
PotashCorp (NYSE: POT)
Rohm & Haas (NYSE: ROH)

CAPS members bullish on IPHS also bullish on

Apple (Nasdaq: AAPL)

CAPS members bearish on IPHS also bearish on

Ford (NYSE: F)
First Solar (Nasdaq: FSLR)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 397 of the 424 members who have rated Innophos -- some 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include Aggiemedic01 and JMJeffrey.

Last month, Aggiemedic01 highlighted Innophos' cheapish valuation (which is even lower today) as one reason to take a look:

Need to keep an eye on inventory management, but assuming that they can bring that under control, their cash flow could be huge. That cash flow will go to pay down debt and with a reduced debt load, this company will look even better. … Worth watching carefully, but at this price, it's a screaming buy.

In a pitch from three weeks ago, JMJeffrey elaborates:

This one ran away from me, but thanks to the market malaise I now have an opportunity to buy this consumer phosphate producer back where I wanted to in the first place. This is a solid company in a niche market with not a whole lot of competition and some significant barriers to entry. The downside has been the debt that the company was given when it was 'spun-off'. The good news is that the debt is getting paid off and as the company deleverages the coiled spring starts to push. Excellent yield while we wait for the capital appreciation.

What do you think about Innophos, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

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11/20/2009 4:00 PM
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Innophos Holdings,… CAPS Rating: *****
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