Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nuclear services specialist EnergySolutions (NYSE: ES ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at EnergySolutions' business and see what CAPS investors are saying about the stock right now.
EnergySolutions facts
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Headquarters (Founded)
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Salt Lake City, Utah (1988)
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Market Cap
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$428 million
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Industry
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Environmental and facilities services
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Trailing-12-Month Revenue
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$1.7 billion
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Management
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CEO Val John Christensen (since February 2010
CFO Mark McBride (since January 2010)
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Return on Equity (Average, Past 3 Years)
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7.2%
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Cash/Debt
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$34 million / $533 million
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Dividend Yield
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2.1%
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Competitors
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Fluor (NYSE: FLR )
Shaw (NYSE: SHAW )
Jacobs Engineering (NYSE: JEC )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 473 members who have rated EnergySolutions believe the stock will outperform the S&P 500 going forward. These bulls include KhowstBowl and ALFChan.
A few months ago, KhowstBowl tapped EnergySolutions as a rather green opportunity: "[T]he US demands new energy solutions, and [EnergySolutions] is one undervalued small cap that delivers. Solid financials with plenty of room for growth."
As a leader in nuclear waste disposal, EnergySolutions is becoming an increasingly popular way to play the push toward alternative energy. While construction consulting heavyweights Fluor, Shaw, and Jacobs are among EnergySolutions' strongest rivals, they're already pretty big and have their operations spread across a range of industries. Throw in the fact that EnergySolutions trades at a forward P/E discount to those same foes, and it's easy to see why Fools like the stock as the purest and most potent play in the nuclear services space.
CAPS member ALFChan likens EnergySolutions to another highly rated waste hauler:
The barriers to enter this market are extreme (which is good), and the latest Obama plan will give nuclear a much-needed shove.
But instead of owning actual the generators or fuel enrichment facilities themselves, [EnergySolutions] sits pretty as a manager and processor for nuclear facilities -- effectively acting as janitor. That allows [EnergySolutions] to be company agnostic and support the entire market.
Similar to the logic behind [Waste Management (NYSE: WM ) ] ... you will always need someone to take out the trash ... and people won't stop generating it.
What do you think about EnergySolutions, 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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