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 |
| Industry | Appliances |
| Trailing-12-Month Revenue | $479 million |
| Management |
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% |
| Competitors |
Procter & Gamble |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 372 members who have rated National Presto believe the stock will outperform the S&P 500 going forward. These bulls include russellb73 and TXinvestor82.
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.
Outperform.
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