Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, flash memory specialist SanDisk
With that in mind, let's take a closer look at SanDisk's business and see what CAPS investors are saying about the stock right now.
SanDisk facts
Headquarters (founded) | Milpitas, Calif. (1988) |
Market Cap | $10.07 billion |
Industry | Computer storage and peripherals |
Trailing-12-Month Revenue | $4.74 billion |
Management |
Co-founder/CEO Eli Harari Co-founder/COO Sanjay Mehrotra |
Return on Equity (average, past 3 years) | (5.4%) |
Cash/Debt | $2.9 billion / $1.7 billion |
Competitors |
Micron Technology
Sony
Intel |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 92% of the 1,968 members who have rated SanDisk believe the stock will outperform the S&P 500 going forward. These bulls include All-Star nonzerosum, who is ranked in the top 5% of our community, and sellthosecalls.
Late last month, nonzerosum tapped the stock as a particularly smart selection: "Smartphones are finally taking off. Then there is the web caching application for web servers that store the most recent data in flash for fast access. And to top all this growth potential off, we have an incredibly good valuation."
As a leader in the flash storage space, SanDisk remains an attractive play on the rapid proliferation of smartphones and tablet computers. That mobile tailwind has even helped drive a trailing-12-month operating margin (31.2%) in line with chip giant Intel's (32.9%) and higher than that of rivals Micron (18.7%) and Sony (3.1%), as well as solid-state foes Western Digital
CAPS member sellthosecalls elaborates on the positive forces working in SanDisk's favor:
I like this cyclical company in the short to medium term, with no foreseeable excess of flash, the rising tide of Apple devices and emergence or talk of the wider spread use of solid state drives, a solid balance sheet, and the retiring of a CEO that has a notorious reputation about not caring about shareholders. The difference now from the 2005-2006 run is real earnings, nice drag-and-drop retail products that I prefer over the synced up download dependent protected [Apple] equivalents, and the coming of age of the SanDisk business model that has at times seemed like a losing battle.
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