Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese plant nutrient manufacturer Yongye International
With that in mind, let's take a closer look at Yongye's business and see what CAPS investors are saying about the stock right now.
Yongye facts
Headquarters | Beijing |
Market Cap | $297.7 million |
Industry | Fertilizers and agricultural chemicals |
Trailing-12-Month Revenue | $214.1 million |
Management |
Chairman/CEO Wu Zishen (since 2001) CFO Sam Yu (since 2009) |
Return on Equity (Average, Past 3 Years) | 33.8% |
Cash/Debt | $41.9 million / $800 thousand |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 1,962 members who have rated Yongye believe the stock will outperform the S&P 500 going forward. These bulls include idahogeo and ahgang.
Earlier this month, idahogeo touched on Yongye's volatile nature:
This one is a roller coaster ... eventually, the fundamentals (i.e. good cash position, low debt, low earnings multiple & PEG) should get some traction and squeeze the shorts? ... In any event, there are only two ways to take this one: super short or ultra long. I'm taking the latter.
In fact, Yongye currently sports an almost unbelievable forward P/E of 3.1. That represents a massive discount to much larger fertilizer plays like Agrium
CAPS member ahgang elaborates on the bull case:
China's farm land has been decreasing. ... How to grow same amount or more foods from dwindling farmlands? Fertilizer is the key, correct? Yongye is a proven provider of very effective stuff and recently received the "Integrity Award" ... that is not a small achievement and recognition in such a vast country and competitive industry. Just be patient and don't let shorty drive you crazy.
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