Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cigarette maker Vector Group (VGR 0.10%) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Vector and see what CAPS investors are saying about the stock right now.
Vector facts
|
Headquarters (Founded) |
Miami (1911) |
|
Market Cap |
$1.5 billion |
|
Industry |
Tobacco |
|
Trailing-12-Month Revenue |
$563.2 million |
|
Management |
CEO Howard Lorber CFO Bryant Kirkland |
|
Return on Capital (Average, Past 3 Years) |
21.3% |
|
Cash/Debt |
$415.9 million / $672.3 million |
|
Dividend Yield |
10% |
|
Competitors |
Lorillard (NYSE: LO) |
Sources: S&P Capital IQ and Motley Fool CAPS.
Just yesterday, CAPS member rknapton succinctly summed up the Vector bear case for our community:
Short. Cigarette manufacturer and seller is going to face headwinds obviously. Looks like mostly [U.S. operations] so especially here. Revs have stopped growing, earnings have been declining and they have quite a bit of debt. And why the heck are they issuing a ton of debt to finance a 10% dividend. Stupid. Not to mention insiders know this and sold over a million shares.
