Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power management solutions provider Power-One (Nasdaq: PWER ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Power-One's business and see what CAPS investors are saying about the stock right now.
Power-One facts
| Headquarters (Founded) |
Camarillo, Calif. (1973) |
| Market Cap |
$444 million |
| Industry |
Electronic components |
| Trailing-12-Month Revenue |
$1.12 billion |
| Management |
CEO Richard Thompson (since 2008)
CFO Gary Larsen (since 2010) |
| Return on Equity (Average, Past 3 Years) |
19.3% |
| Cash/Debt |
$182.7 million / $36 million |
| Competitors |
Emerson Electric (NYSE: EMR )
General Electric (NYSE: GE )
Siemens (NYSE: SI ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 656 members who have rated Power-One believe the stock will outperform the S&P 500 going forward. These bulls include markbudge1 and jed71.
Just last month, markbudge1 tapped the stock as a potent bargain opportunity:
The inverter market is growing and so will Power-One. It has a high ROI and ROE and little debt. Once good news hits, it will skyrocket.
In fact, Power-One sports a particularly paltry P/E of 4. That represents a clear discount to much larger rivals like Emerson (16), GE (12), and Siemens (11).
CAPS member jed71 elaborates on the Power-One bull case:
I am definitely not what you would call a "greenie", but this technology is here to stay. The more efficient it becomes, the more I believe it will become a part of daily life. ...
Here you have a company that makes power inverters that convert DC energy from a solar or wind farm, and make it into usable AC energy on a power grid. These converters are highly efficient (from what I have read) and actually do a nice job reducing power conversion losses. I recently read that they have / are continuing to design commercial models that increases efficiency from large solar / wind farms. Pretty neat stuff.
The financials aren't bad at all either, considering this is a "green tech" company (which tend to be on the pricey side). ... With operating margins approaching 25%, I am thinking it might be time to put some real money into this one.
What do you think about Power-One, 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!
Interested in another easy way to track Power-One? Add it to your watchlist.
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