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Why BofI Is Poised to Keep Booming

By Brian D. Pacampara, CFA - Apr 23, 2013 at 10:53AM

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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, consumer banking services specialist BofI Holding (AX -1.41%) has earned a coveted five-star ranking.

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

BofI facts

Headquarters (founded)

San Diego, Calif. (1999)

Market Cap

$497.1 million

Industry

Savings and loans

Trailing-12-Month Revenue

$102.6 million

Management

CEO Gregory Garrabrants (since 2010)
CFO Andrew Micheletti (since 2001)

Return on Equity (average, past 3 years)

16.2%

Cash / Debt

$97.9 million / $647.2 million

Competitors

Bank of America 
E*TRADE Bank
ING Bank

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

On CAPS, 99% of the 222 members who have rated BofI believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, TMFTheRealDeal, succinctly summed up the BofI bull case for our community:

Just as Amazon (NASDAQ: AMZN) dominated retail by disrupting brick-and-mortar retail stores, BOFI is in the same position when it comes to banks. A structural cost advantage and trends pointing toward increased utilization of Internet-based solutions bode well for BOFI. And as it expands, margins should improve due to scalability of the business. Excellent long-term potential here.

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