Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Spanish telecom giant Telefonica
With that in mind, let's take a closer look at Telefonica's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Madrid (1924)|
|Market Cap||$120.4 billion|
|Industry||Integrated telecommunication services|
|Trailing-12-Month Revenue||$81.8 billion|
CEO Cesar Izuel (since 2000)
CFO Santiago Valbuena (since 2002)
|Return on Equity (average, past 3 years)||45.2%|
|Cash/Debt||$11.97 billion / $84.65 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 544 members who have rated Telefonica believe the stock will outperform the S&P 500 going forward. These bulls include ner25 and All-Star TMFDeej, who is ranked in the top 1% of our community.
This past summer, ner25 likened Telefonica to another Madrid-based bargain opportunity: "Similar play to Banco Santander
While Telefonica's shares have rebounded nicely over the past four months, our community thinks they're still worth paying for. In fact, Telefonica's three-year average return on equity (45%) tops that of European rivals Vodafone (7.6%) and France Telecom (14%), its fiercest Latin American foe America Movil (41%), and even U.S.-based counterparts Verizon
Yes, the Spanish economy is a mess. The official unemployment rate there of 20% makes the 10% that we're experiencing here in the United States today look like a utopia. ...
Since Spain is such a mess, why would I want to buy stock in a company from there? Even though [Telefonica] is a Spanish company, it derives nearly two-thirds of its revenue from outside of the country. A huge chunk of that comes from its rapidly growing operations in Latin America. ...
Cheap companies that pay dividends always catch my eye. Telefonica has both of these attributes.
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