Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cold-rolled steel equipment producer Ampco-Pittsburgh (NYSE: AP ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Ampco-Pittsburgh's business and see what CAPS investors are saying about the stock right now.
Ampco-Pittsburgh facts
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Headquarters (Founded)
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Pittsburgh (1929)
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Market Cap
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$262.5 million
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Industry
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Industrial machinery
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Trailing-12-Month Revenue
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$326.89 million
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Management
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Chairman/CEO Robert Paul
CFO Marliss Johnson |
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Return on Capital (Average, Past 3 Years)
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18%
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Cash/Debt
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$61.08 million / $13.31 million
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Dividend Yield
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2.8%
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Competitors
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Roper Industries (NYSE: ROP )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 251 members who have rated Ampco-Pittsburgh believe the stock will outperform the S&P 500 going forward. These bulls include alzbeta and All-Star Staka, who is ranked in the top 2% of our community.
Late last year, alzbeta noted that Ampco-Pittsburgh is a company "with a long history, furnishing parts for companies who fabricate essentials." Our CAPS member concluded, "As the recovery progresses, industries will upgrade their facilities."
Currently, Ampco-Pittsburgh even sports a particularly paltry forward P/E of 8.5. That represents a discount to rival Roper Industries (18.2), as well as larger industrial stocks like General Electric (NYSE: GE ) (12.5) and United Technologies (NYSE: UTX ) (13.6).
Just last week, Staka listed the stock's pros and cons:
Positive:
- Fundamentally cheap (only 30% above tangible book value)
- Clean balance sheet, reasonable growth and margins
- Leader in a niche product (Cold-rolling steel equipment)
- China joint venture just about to start production
- No analyst coverage (hidden gem)
Negative:
- Insiders don't seem hold a lot of shares (but I'm not sure how realistic these numbers are because others speak about AP as a family business?)
- Asbestos litigation costs still a considerable drag on profits
- Cyclical stock
What do you think about Ampco-Pittsburgh, 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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