Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, plant engineering and equipment supply company KHD Humboldt Wedag (NYSE:KHD) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks woefully lag the market average.

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

KHD facts

Headquarters (founded)

Central, Hong Kong (1951)

Market Cap

$400.75 million


Construction and engineering

TTM Revenue

$638.17 million


CEO James Busche (since 2006)
CFO Alan Hartslief (since 2007)

Return on Equity (average, last three years)



FLSmidth & Co.

CAPS members bullish on KHD also bullish on:

Cemex (NYSE:CX)
Starbucks (NASDAQ:SBUX)

CAPS members bearish on KHD also bearish on:

D.R. Horton (NYSE:DHI)
Gushan Environmental Energy (NYSE:GU)
E-House (China) Holdings (NYSE:EJ)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 99% of the 1,039 members who have rated KHD believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star saunafool and CavalierGator.

Late last month, saunafool summed up exactly why Fools think the stock is a no-brainer: balance-sheet bargain. "The market cap is less than cash on hand and KHD is still cash flow positive."

In a pitch from two weeks earlier, CavalierGator shares that sentiment, citing KHD's backlog of business as reason to remain bullish:

Even though their order backlog is shrinking, the fact that it still exists - pessimistically in excess of $700 million - is an encouraging sign they will weather this storm and emerge in a strong position. I also think they are in a good position to benefit from the coming increases in infrastructure investment. All in all, a great long term choice.

What do you think about KHD Humboldt, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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