Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, medical technology provider Kinetic Concepts
With that in mind, let's take a closer look at Kinetic's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||San Antonio (1976)|
|Market Cap||$3.90 billion|
|Trailing-12-Month Revenue||$2.02 billion|
CEO Catherine Burzik (since 2006)
CFO Martin Landon (since 2002)
|Return on Equity (Average, Past 3 Years)||20.8%|
|Cash/Debt||$316.6 million / $1.11 billion|
Johnson & Johnson
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 717 members who have rated Kinetic believe the stock will outperform the S&P 500 going forward. These bulls include Harry6609 and All-Star TSIF, who is ranked in the top 0.2% of our community.
Late last year, Harry6609 tapped Kinetic as a particularly healthy pick: "Strong Fundamentals, high Cash Flow Yield. Leadership Position in large, underpenetrated markets, opening new markets (Japan)."
Currently, Kinetic even trades at a forward P/E of 11.0. That represents a slight discount to much larger rivals Covidien (12.7), Johnson & Johnson (11.6), and Stryker (14.9).
Last October, CAPS All-Star TSIF elaborated on the bull case:
Their medical products have continued to provide them with decent margins and sales growth. ... Kinetic has been paying down the debt load steadily from cash flow. ... Overall, while growth has slowed from 2008, Kinetic remains operating with good margins and great cash flow in a market that may fluctuate with government intervention, but one that has a constant customer base, both locally and internationally.
What do you think about Kinetic, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Covidien, Stryker, and Johnson & Johnson are Motley Fool Inside Value picks. Johnson & Johnson is also a choice of Income Investor, and Motley Fool Options has recommended a diagonal call position on it. The Fool owns shares of Kinetic Concepts and Johnson & Johnson. Motley Fool Alpha LLC owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days.
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