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Female Health: 5-Star Small-Caps Poised to Pop

By Brian Pacampara – Nov 21, 2012 at 3:26PM

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Market-trouncing returns could be written in these five stars.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, female condom maker Female Health (VERU -2.54%) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Female Health and see what CAPS investors are saying about the stock right now.

Female Health facts

Headquarters (founded)

Chicago (1896)

Market Cap

$201.3 million


Personal products

Trailing-12-Month Revenue

$32.2 million


Chairman/CEO O. B. Parrish
CFO Donna Felch

Return on Capital (average, past 3 years)


Cash / Debt

$8.3 million / $0

Dividend Yield



Church & Dwight (CHD 3.87%)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 294 members who have rated Female Health believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star aufergy, succinctly summed up the Female Health bull case for our community:

- Debt free balance sheet
-Company has strong margins and produces healthy free cash flow. ...
-Very little (if any) competition. They have the only FDA approved [female condom product].

A company that has a nice moat in a niche that should continue to grow, a strong balance sheet, and only one analyst following it. All that for 16x trailing earnings? I'm in. Peter Lynch would be proud.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Female Health may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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