Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen products producer Terra Nitrogen Company
With that in mind, let's take a closer look at Terra Nitrogen's business and see what CAPS investors are saying about the stock right now.
Terra Nitrogen facts
| Headquarters (Founded) | Deerfield, Ill. (1991) |
| Market Cap | $2.93 billion |
| Industry | Agricultural chemicals |
| Trailing-12-Month Revenue | $741 million |
| Management | Chairman/CEO Dr. Stephen Wilson Vice President Douglas Barnard |
| Return on Capital (Average, Past 3 Years) | 88.9% |
| Cash/Debt | $144 million / $0 |
| Dividend Yield | 10.1% |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96.5% of the 1,300 members who have rated Terra Nitrogen believe the stock will outperform the S&P 500 going forward. These bulls include indotrekker and americanbuffalo.
Earlier this month, indotrekker tapped the stock as a timely income opportunity: "[Terra Nitrogen's] high-yield dividends, market niche and huge profit margins will set it up as a hedge for many cautious investors in this precarious market."
Currently, Terra Nitrogen even sports a cheapish P/E of 6.6. That represents a clear discount to industry peers like Monsanto
CAPS member americanbuffalo expands on Terra as a great way to play defense:
I'm adding this fertilizer company to my picks based on my assumption that we are on the cusp of a nasty bear market. This is a high yield, low beta stock in an industry tied to food production -- just the ticket to ride out a bear market. Terra Nitrogen performed very well in the last bear cycle (2008) and may provide some protection over the next few months.
What do you think about Terra Nitrogen, 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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