Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Synutra International (NYSE:SYUT), which sells dairy-based nutritional products in China, has received the dreaded one-star ranking.

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

Synutra facts


Rockville, Md.

Market Cap

$758.7 million


Packaged foods and meats

Trailing-12-Month Revenue

$232.5 million


Chairman/CEO Liang Zhang (since 2000)

CFO Lawrence Lee (since 2007)

Trailing-12-Month Return on Capital


Cash / Debt

$29.6 million / $304.5 million

6-Month Return


Other Highly Rated Packaged Food Stocks

General Mills (NYSE:GIS)
Kraft Foods (NYSE:KFT)
Unilever (NYSE:UL)

CAPS Members Bearish on SYUT Also Bearish on


CAPS Members Bullish on SYUT Also Bullish on

Southern Copper (NYSE:PCU)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 49% of the 115 members who have rated Synutra believe the stock will underperform the S&P 500 going forward. These bears include All-Stars TSIF and mrindependent, both of whom are ranked in the top 2% of our community.

In July, TSIF reminded Fools that Synutra "is a 'calf' in the dairy business in China compared to American Dairy, which is also in China and growing by leaps." Our All-Star concludes with some troubling trends: "Synutra is having a trough time even maintaining profitability with NEGATIVE 30% margins and high debt. … Accounts payable are soaring and revenue plunging. Inventory has doubled."

In a pitch from last week, mrindependent also expresses a lactose-intolerant stance:

Synutra is a Chinese company that makes baby formula and had a massive recall recently. Since that time, the company has been unable to recover. ... Although long-term success is definitely possible, the stock seems overvalued given the company's many challenges.

What do you think about Synutra, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Unilever is a Motley Fool Income Investor and a Global Gains selection. The Fool's disclosure policy always gets a perfect score.