Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office-supply retailer OfficeMax
With that in mind, let's take a closer look at OfficeMax's business and see what CAPS investors are saying about the stock right now.
OfficeMax facts
| Headquarters (founded) | Naperville, Ill. (1913) |
| Market Cap | $482.5 million |
| Industry | Specialty stores |
| Trailing-12-Month Revenue | $7.1 billion |
| Management | CEO Ravichandra Saligram (since 2010) CFO Bruce Besanko (since 2009) |
| Return on Equity (average, past 3 years) | 6.1% |
| Cash/Debt | $427.1 million / $1.7 billion |
| Competitors |
Office Depot Staples Wal-Mart |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 41% of the 294 members who have rated OfficeMax believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, MHenage, succinctly summed up the bear case for our community:
Negative [free cash flow], more leverage than Staples. OfficeMax has been inconsistent with share buybacks and I expect those to disappear as the reality of their negative [free cash flow] situation sets in.
What do you think about OfficeMax, 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!
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
