Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer RadioShack
With that in mind, let's take a closer look at RadioShack's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Fort Worth, Texas (1899)|
|Market Cap||$2.1 billion|
|Trailing-12-Month Revenue||$4.42 billion|
CEO Julian Day (since 2006)
CFO James Gooch (since 2006)
|Return on Equity (average, past 3 years)||25.2%|
|Cash/Debt||$723.4 million / $677.8 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 53% of the 640 members who have rated RadioShack believe the stock will underperform the S&P 500 going forward. These bears include All-Star minnjim1, who is ranked in the top 15% of our community, and mfoDon.
Just two months ago, minnjim1 touched on RadioShack's disappointing track record:
Radio Shack's management has been spectacularly unable to achieve success during three decades of massive electronics gadget, computer and internet revolution. With all that going on in the market, they have just barely been able to hang on. I will miss them when they depart the malls and strip malls of America.
Fools remain skeptical about how RadioShack can differentiate itself in the increasingly competitive consumer electronics space. Over the past five years, RadioShack's bottom line has steadily declined (-8.3% per annum), while electronics stores Best Buy (5.6%) and hhgregg
CAPS member mfoDon elaborates on the bear case:
When was the last time you actually went inside a Radio Shack? Yeah. Me too. Perhaps a merger would bump the stock but, really, what would a buyer be getting? Small footprint stores in malls that already have cheaper rents and include custom build-out for new lessees? Hard to see the 'Shack as anything but another icon slowing becoming as relevant as vinyl and CDs.
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