Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, French telecommunications giant France Telecom (NYSE: FTE ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at France Telecom's business and see what CAPS investors are saying about the stock right now.
France Telecom facts
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Headquarters (Founded)
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Paris (1990)
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Market Cap
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$41.71 billion
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Industry
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Integrated telecom services
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Revenue
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$67.5 billion
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Management
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Chairman/CEO Stephane Richard
CFO Gervais Pellissier
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Return on Equity (Average, Past 3 Years)
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11.9%
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Cash/Debt
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$7.7 billion / $54.6 billion
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Dividend Yield
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8.9%
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Competitors
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AT&T (NYSE: T )
Vodafone (Nasdaq: VOD )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 529 members who have rated France Telecom believe the stock will outperform the S&P 500 going forward. These bulls include techlvr11 and costav.
Late last month, techlvr11 tapped France Telecom as a tempting opportunity: "Looks promising with low P/E (both current and forward), high FCF and low P/FCF ratio. ... The company is leaking sales but I believe it is still maintaining high margins and will bounce back in no time."
In fact, France Telecom sports a particularly paltry price-to-cash flow of 3.3. That represents a discount to other telecom giants like AT&T (5.3), Vodafone (7.1), and China Mobile (NYSE: CHL ) (5.2).
CAPS member costav expands on the France Telecom outperform case:
This stock is cheap when you considers its price per mobile user ratio. This company should grow as more customers start buying data plans, it acquires more mobile users overseas, and it grows its user base at home by offering bundled Internet, phone, and cable.
What do you think about France Telecom, 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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