Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified manufacturer National Presto Industries
With that in mind, let's take a closer look at National Presto's business and see what CAPS investors are saying about the stock right now.
National Presto facts
|Headquarters (founded)||Eau Claire, Wis. (1905)|
|Market Cap||$750.8 million|
|Trailing-12-Month Revenue||$479 million|
Chairman/CEO Maryjo Cohen (since 1994)
CFO Randy Lieble (since 2008)
|Return on Equity (average, past 3 years)||17.6%|
|Cash/Debt||$150.7 million / $0|
|Dividend Yield (incl. special dividends)||7.5%|
Procter & Gamble
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last month, russellb73 listed several of National Presto's positives:
Special dividend of approx 7%, well diversified (three major parts to company in different areas), reasonable p/e. Believe stock has been over punished because of rising raw material costs ... they should be able to pass on costs to consumers ... diapers and ammunition people will buy if it all able.
Currently, National Presto even trades at a cheapish forward P/E of 9.5. That represents a discount to competitor Procter & Gamble (14.5), as well as other appliance stocks such as Lennox International
CAPS member TXinvestor82 elaborates on the bull case:
Great small-cap dividend growth story. Long operating history & no debt mitigate some of the risk associated with smaller companies.
7 years of dividend increases, with a 5 year [earnings growth rate] of 39%. Impressive.
88% payout ratio is a warning sign to sustainability. But it's no surprise that the company's special dividends are tied to annual profits -- so strength in the economy will translate to strength in this stock.
What do you think about National Presto, 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. Procter & Gamble is a Motley Fool Income Investor selection. Try any of our Foolish newsletter services free for 30 days.