Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, photography products specialist Eastman Kodak (NYSE: EK ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Eastman Kodak and see what CAPS investors are saying about the stock right now.
Eastman Kodak facts
| Headquarters (Founded) |
Rochester, N.Y. (1880) |
| Market Cap |
$307.8 million |
| Industry |
Photographic products |
| Trailing-12-Month Revenue |
$6.23 billion |
| Management |
President/COO Philip Faraci
Vice President/CFO Antoinette McCorvey |
| Return on Capital (Average, Past 3 Years) |
(10.3%) |
| Cash/Debt |
$900 million / $1.57 billion |
| Competitors |
Canon (NYSE: CAJ )
Hewlett-Packard (NYSE: HPQ )
Sony (NYSE: SNE ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 41% of the 799 members who have rated Eastman Kodak believe the stock will underperform the S&P 500 going forward. These bears include All-Star BuffettJunior1, who is ranked in the top 5% of our community, and ndirish15.
Earlier this month, BuffettJunior1 summed up Eastman Kodak's not-so-pretty picture: "This used to be one of the biggest companies in the world. Today it's a dinosaur that will soon become extinct."
In fact, over the past three years, Eastman Kodak has sported a negative average operating margin of about 1%. Meanwhile, competitors Canon, HP, and Sony boast positive average operating margins of 9%, 10%, and 1%, respectively.
CAPS member ndirish15 elaborates on the bear case:
This company has absolutely no future. As a resident of Rochester, I have watched Kodak maintain embarrassing year-over-year losses with much of their profit coming from "restructuring" through laying off workers and selling property. That pipeline has virtually run dry, and patents are the only thing this company has left.
What do you think about Eastman Kodak, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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