Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cast-resin transformer maker Jinpan International (Nasdaq: JST ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Jinpan's business and see what CAPS investors are saying about the stock right now.
Jinpan facts
| Headquarters (Founded) |
Haikou, China (1993) |
| Market Cap |
$208.6 million |
| Industry |
Electrical components and equipment |
| Trailing-12-Month Revenue |
$142.86 million |
| Management |
CEO Zhiyuan Li (since 1997)
CFO Mark Du (since 2002)
|
| Return on Equity (Average, Past 3 Years) |
21.8% |
| Cash/Debt |
$17.14 million / $5.36 million |
| Dividend Yield |
1.1% |
| Competitors |
ABB (NYSE: ABB )
Siemens (NYSE: SI )
General Electric (NYSE: GE )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 1,340 members who have rated Jinpan believe the stock will outperform the S&P 500 going forward. These bulls include toyboatt and All-Star Gtrinvestor, who is ranked in the top 0.1% of our community.
This past summer, toyboatt touched on Jinpan's solid fundamentals:
Great financials and 10 years proven growth in Chinese market. High insider ownership. Low debt = ability to take on debt for the right opportunity. Electric infrastructure will only grow in demand as fuel prices discourage travel. China has a lot of infrastructure to build in the next 20 years.
While Jinpan has the unenviable task of competing with a few multinational behemoths, its small size and leadership position in electricity-hungry China (No. 2 in most of its regions) gives it seemingly tastier growth prospects. In fact, Jinpan's compound net income growth over the past three years (20.4%) tops that of much larger transformer makers like ABB (8.5%), Siemens (-7.2%), GE (-22.8%), and Emerson Electric (NYSE: EMR ) (-2%). And with Jinpan trading at a forward P/E discount to each of those same giants, the shares also look like a cheap way to go for growth.
CAPS All-Star Gtrinvestor elaborates:
It scares me how small this cap is on this stock, but year after year this thing keeps plugging away in an economy that is a growth machine. Stock trades at about Net Book Value as well, so I'm going ahead and taking a chance that this isn't a scam, but actually a genuine company with real growth potential. If this ends up being true, then the P/E on this stock should expand significantly, and the return on the stock should be great even if earnings don't grow all that much.
What do you think about Jinpan, 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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