Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, data storage specialist Xyratex (NASDAQ: XRTX) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Xyratex and see what CAPS investors are saying about the stock right now.
Xyratex facts
|
Headquarters (founded) |
Havant, U.K. (1966) |
|
Market Cap |
$291.6 million |
|
Industry |
Computer storage and peripherals |
|
Trailing-12-Month Revenue |
$1.1 billion |
|
Management |
Interim CEO Ernest Sampias CFO Richard Pearce |
|
Return on Equity (average, past 3 years) |
15.8% |
|
Cash/Debt |
$92.8 million / $0 |
|
Dividend Yield |
2.8% |
|
Competitors |
Dot Hill Systems EMC Teradyne |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 274 members who have rated Xyratex believe the stock will outperform the S&P 500 going forward.
Just last month, one of those bulls, All-Star Staka, offered a balanced take on the Xyratex opportunity:
Positive:
-Fundamentally cheap with much higher earnings potential, no debt, good dividend
-Activist investor will drive profitability, brings in a new CEO, even selling the company seems possible
-New ClusterStor family should drive future growth even if current core business is deflating
Negative:
-Weakness in core business limits the available time frame for the entrance into the new cluster storage business
