Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small-cap drugmaker KV Pharmaceutical (NYSE:KV-A) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at KV's business and see what CAPS investors are saying about the stock right now.

KV facts

Headquarters (Founded)

Bridgeton, Mo. (1942)

Market Cap

$163.7 million



Trailing-12-Month Revenue

$636.4 million


Interim CEO David Van Vliet (since December 2008)

Interim CFO Thomas McHugh (since September 2009)

Compound Annual Revenue and Net Income Growth (Over Past 5 Years)

20.1% and 25.9%

Cash / Debt

$135.1 million / $269 million


AstraZeneca (NYSE:AZN)


Novartis (NYSE:NVS)

CAPS Members Bullish on KV-A Also Bullish on

Johnson & Johnson (NYSE:JNJ)

General Electric (NYSE:GE)

CAPS Members Bearish on KV-A Also Bearish on

Hovnanian Enterprises (NYSE:HOV)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 254 members who have rated KV believe the stock will outperform the S&P 500 going forward. These bulls include pablogrimes and "All-Star" pick compiler AllStarPortfolio, which is ranked in the top 10% of our community.

Late last month, pablogrimes tapped KV as a cheap way to buy into healthy trends: "A beaten-down stock price for a company that has weathered the storm. I see it as a bargain-basement price to expose my portfolio to the one portion of health care industry that's not under debate -- drug production & delivery."

In a pitch from last month, AllStarPortfolio (using a pick and pitch from ChrisGraley) noted that KV is steadily recovering from its recent issues. Here's an excerpt:

In March 2009, the company agreed to an injunction from the FDA to stop manufacturing and shipping all drugs until they receive approval from the FDA on good manufacturing practices. ... All that being said, this company has turned the corner. You've seen the previous growth rate ... They also have some drugs that were delayed in the FDA pipeline that are now being considered as well. They should see a surge in growth as these drugs get approved. They got caught doing what most drug companies have been doing to a lesser extent, at a time that the FDA wanted to prove a point that they were cracking down. They will now have the best manufacturing processes for the next 5 years.

What do you think about KV, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Novartis is a Motley Fool Global Gains pick, and Johnson & Johnson is a choice of Income Investor. The Fool's disclosure policy always gets a perfect score.