Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, educational travel specialist Ambassadors Group
With that in mind, let's take a closer look at Ambassadors' business and see what CAPS investors are saying about the stock right now.
Ambassadors Group facts
Headquarters (Founded) |
Spokane, Wash. (1967) |
Market Cap |
$245.1 million |
Industry |
Education and training services |
Trailing-12-Month Revenue |
$103.9 million |
Management |
CEO Jeffrey Thomas (since 2001) |
Return on Equity (Average, Past 3 Years, Not Including Quarter Just Ended) |
34.5% |
Cash/Debt |
$109.5 million / $0 |
Dividend Yield |
1.8% |
Other Education Service Stocks |
Apollo Group |
CAPS Members Bullish on EPAX Also Bullish on |
General Electric |
CAPS Members Bearish on EPAX Also Bearish on |
Advanced Micro Devices |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96.5% of the 493 members who have rated Ambassadors believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars SlowThought and TSIF, both of whom are ranked in the top 15% of our community.
Just last Friday, SlowThought helped school Fools on several of the stock's positives: "Revenue decline seems to be bottoming out. Good cash flow, good margin, and a dividend."
In a pitch from one day earlier, TSIF expands on Ambassadors' recent miss as a tasty turnaround opportunity. Here's an excerpt:
With a 20% stock price trimming today after disappointing Mr. Market with it’s earnings I gave it another look. The recession has clearly affected it as it’s bookings for student travel have dropped significantly. Ambassadors has a niche market moving around students, athletes and professionals domestically and worldwide. … With profit margins of 20% and operating margins of 29% even in a period of no growth the revenue and cash flow stream are impressive … If the economy continues to lag, swine flu becomes an issue, or airline travel becomes undesirable then there might be a better entry point down the line, but at this time, the buy low and sell high model points to taking a chance.
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