Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics manufacturing specialist Nam Tai Electronics
With that in mind, let's take a closer look at Nam Tai's business and see what CAPS investors are saying about the stock right now.
Nam Tai facts
|
Headquarters (Founded) |
Shenzhen, China (1975) |
|
Market Cap |
$284.5 million |
|
Industry |
Electronic manufacturing services |
|
Trailing-12-Month Revenue |
$461.7 million |
|
Management |
Founder/Chairman/CFO Ming Kown Koo CEO Colin Yeoh |
|
Return on Equity (Average, Past 3 Years) |
5% |
|
Cash/Debt |
$218.3 million / $0 |
|
Competitors |
Flextronics
Jabil Circuit
Logitech International |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 828 members who have rated Nam Tai believe the stock will outperform the S&P 500 going forward. These bulls include cz4ever and fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 3% of our community.
Two weeks ago , cz4ever commented on Nam Tai's recent decision to resume dividend payments in 2011 ($0.05 per share each quarter):
It's ... a positive sign that management has decided it can safely start to disburse some of its large cash holdings. So, maybe it's time for this longtime under-performer to finally earn its 5-* fool rating!
Nam Tai seems to be recouping nicely from a brutal 2009, as evidenced by its steadily improving results. Of course, with the stock trading at an almost unbelievable EV/EBITDA of 1.8 -- representing a clear discount to rivals like Flextronics (5.4), Jabil (5.7), and Logitech (14.2) -- many Fools think it's still cheap enough to take a chance on.
Anders elaborates on the Nam Tai bull case:
2009 was a tough year for Nam Tai but the company has recovered to nearly full health. The simpler reporting structure and operations should keep the machinery running smoothly, and the company is run in a tremendously shareholder-friendly fashion: Nam Tai hasn't diluted its stock significantly since 2007 and we already talked about the dividend policy. This Chinese tiger cub managed all this at a time of waning consumer confidence on a global level -- just imagine what happens when that secular trend turns around.
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