Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hydraulic valve and manifold maker Sun Hydraulics (Nasdaq: SNHY ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Sun Hydraulics' business and see what CAPS investors are saying about the stock right now.
Sun Hydraulics facts
| Headquarters (Founded) |
Sarasota, Florida (1970) |
| Market Cap |
$736.33 million |
| Industry |
Industrial machinery |
| Trailing-12-Month Revenue |
$150.7 million |
| Management |
CEO Allen Carlson (since 2000) |
| Return on Equity (Average, Past 3 Years) |
15.6% |
| Cash/Debt |
$44.8 million / $0 |
| Dividend Yield |
0.8% |
| Competitors |
Parker Hannifin (NYSE: PH ) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 1,303 members who have rated Sun Hydraulics believe the stock will outperform the S&P 500 going forward. These bulls include mitleg and FoolishMikee.
Earlier this year, mitleg listed several of Sun Hydraulics' positives: "Another firm with outstanding growth. An old line company. Good insider presence. Stable financial picture. An excellent track record to look at."
Over the next five years, Sun Hydraulics is expected to grow its bottom line at a brisk rate of 26.5% annually. That's faster than rival Parker Hannifin (11.5%), as well as other industrial equipment stocks like ABB (NYSE: ABB ) (11.6%) and Emerson Electric (NYSE: EMR ) (15.2%).
CAPS member FoolishMikee elaborates on the bull case:
When times were thriving, Sun was reducing debt and building up cash ... allowing them to be able to deploy that cash if the right opportunity appears. ... The balance sheet is not only strong with a debt-to-assets ratio of 0% but even through 2009, their cash flow from operations has remained positive. ...
With demand to rebound in 2011, and a better capture of the Indian market will allow SNHY to thrive and increase its sales, earnings, continuing its high productivity and quality through innovation and reward shareholders again and again. ...
I love how boring their annual report is, and how honest they are in telling the numbers, just plain black and white. They don't focus on rewarding the shareholders in words in the reports, but just on customers, and instead put money where their mouth is (and where the shareholders pockets are) and reward shareholders in practice through capital gains and dividends. Their aim remains in offering superior products, reliable delivery, and as a by-product that makes SNHY a good investment.
What do you think about Sun Hydraulics, 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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