Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese electric motor maker Harbin Electric (Nasdaq: HRBN ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Harbin's business and see what CAPS investors are saying about the stock right now.
Harbin facts
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Headquarters
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Harbin, China
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Market Cap
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$512.3 million
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Industry
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Electrical components
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Trailing-12-Month Revenue
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$365.1 million
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Management
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CEO Tianfu Yang
CFO Zedong Xu
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Return on Equity (Average, Past 3 Years)
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17.5%
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Compound Annual Revenue and Net Income Growth (Over Past 3 Years)
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94.7% and 49%
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Cash/Debt
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$40.3 million / $57.0 million
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Competitors
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Emerson Electric (NYSE: EMR )
General Electric (NYSE: GE )
Nidec (NYSE: NJ )
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Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance and Motley Fool CAPS.
On CAPS, 96% of the 503 members who have rated Harbin believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Beorn10, who is ranked in the top 3% of our community, and cig2010.
A few months ago, Beorn10 touched on the powerful tailwinds working in Harbin's favor: "China's industrialization and Asia as a whole has revolved around the production of products of value, which can be exported. Specialized motors are a critical part of this economy, which will likely grow as the regional production expands."
In fact, Harbin continued along its torrid growth path in the recent quarter, posting a 175% jump in revenue on increased demand across all its product lines. While Harbin's rivals include global manufacturing behemoths like Emerson, GE, and Nidec, its small size makes it a far more potent way to access China's rapidly expanding industrial base. More importantly, with a paltry PEG ratio of 0.3, substantially lower than those very same giants, Harbin seems like an inexpensive way to go for that growth.
CAPS member cig2010 expands:
[Harbin] is my favorite stock among all of the Chinese companies. I've been a long term holder of this company for several years and plan to hold for long term (5 year minimum).
[Harbin] is well-diversified in the electric motor business and is positioned to take advantage of the buildout of the transportation and industrial infrastructure and high growth of the domestic automotive industry. [Harbin] has experienced high double or triple digit revenue and earnings growth in linear and rotary motors. ...
Low float has contributed to sharp price fluctuations and short % is still high, but appears to be coming down slightly. Potential for share dilution could affect price short term, but long term affect should be insignificant.
What do you think about Harbin, 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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