Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, photography products specialist Eastman Kodak (NYSE: EK) has received the dreaded one-star ranking.

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

Kodak facts

Headquarters (Founded)

Rochester, N.Y. (1880)

Market Cap

$984.2 million


Photographic products

Trailing-12-Month Revenue

$7.19 billion


CEO Antonio Perez (since May 2005)
CFO Antoinette McCorvey (since November 2010)

Return on Capital (Average, Past 3 Years)



$1.62 billion / $1.24 billion


Canon (NYSE: CAJ)
Hewlett-Packard (NYSE: HPQ)
Sony (NYSE: SNE)

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

On CAPS, 39% of the 695 members who have rated Kodak believe the stock will underperform the S&P 500 going forward. These bears include fellow Fool Rich Duprey (TMFCop), who is ranked in the top 20% of our community, and acegdl007.

Late last year, Rich brought Kodak's not-so-pretty picture to our community's attention: "Revenue gains are predicated on one-time, non-recurring infusions of cash. Actual product sales are declining. Spending too much time in court litigating dubious IP patents. Digital picture previews? Really?"

Over the next five years, Kodak's profits are expected to decline at a steep 12% per year.  Most of its rivals are expected to grow at double-digit rates, including Canon (22%), HP (11%), and Sony (84%), as well as photo equipment stocks X-Rite (Nasdaq: XRIT) and Ballantyne Strong (AMEX: BTN) both clocking in with 15% expected growth.

CAPS member acegdl007 elaborates on the bear case:

After failing to embrace the digital revolution in photography, Kodak is hurting. Kodak is a well known brand name due to its history but I'm not sure what innovation the company stands to offer moving forward.

Without even paying dividends to stock holders, about the only thing I can see [Kodak] owners looking forward to is if someone buys out Kodak (a rumor that recently surfaced -- and occasionally comes and goes).

What do you think about Kodak, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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