Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nursing home operator Skilled Healthcare Group (NYSE: SKH ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Skilled Healthcare's business and see what CAPS investors are saying about the stock right now.
Skilled Healthcare facts
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Headquarters
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Foothill Ranch, Calif.
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Market Cap
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$280 million
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Industry
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Healthcare providers and services
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Trailing-12-Month Revenue
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$760 million
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Management
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CEO Boyd Hendrickson (since 2002)
COO Jose Lynch (since 2005)
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Return on Equity (Average, Past 3 Years)
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7.3%
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Compound Annual Revenue and Net Income Growth (Over Past 3 Years)
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14.1% and 92.1%
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Cash / Debt
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$3.2 million / $472.5 million
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Competitors
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Kindred Healthcare (NYSE: KND )
Sun Healthcare (Nasdaq: SUNH )
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CAPS Members Bullish on SKH Also Bullish on
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General Electric (NYSE: GE )
Citigroup (NYSE: C )
GigaMedia (Nasdaq: GIGM )
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CAPS Members Bearish on SKH Also Bearish on
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Jo-Ann Stores (NYSE: JAS )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97.6% of the 127 members who have rated Skilled Healthcare believe the stock will outperform the S&P 500 going forward. These bulls include All-Star mrindependent, who is ranked in the top 1% of our community, and SolarisKing.
Just last week, mrindependent remained bullishly brave in the face of a bearish balance sheet:
[T]he goodwill of this company exceeds it book value, which means that tangible book value is zero. Also, the debt load is very high (probably 10 years worth of earnings). Despite these negatives, I am sure Skilled Health Care will survive for awhile and it fortunes will wax and wane. ... I suspect that the next big move will be up.
In a pitch from late last month, SolarisKing expands on the healthy opportunity:
I don't really trust health care, as i have been burnt on 'news bubbles' before, but this company has a long history of steady earnings, and for what it's worth, analysts say they will make more money next year than in the past. Growing CAPS opinion matches with unanimous wall st opinion. ... Assisted living will rise in the future, and since they are service oriented instead of patent oriented, they may have less risk than some healthcare bubble companies.
What do you think about Skilled Healthcare, 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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