Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health-care equipment maker China Medical Technologies (NASDAQ:CMED) has earned a coveted five-star ranking.

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

China Medical facts

Headquarters (Founded)

Beijing, China (1999)

Market Cap

$514 million


Health-care equipment

Trailing-12-Month Revenue

$128 million


Founder/CEO Xiaodong Wu
CFO Takyung Tsang

Return on Equity (Average, Past 3 Years)


Cash / Debt

$226.5 million / $414.7 million

Dividend Yield



Johnson & Johnson (NYSE:JNJ)
Abbott Labs (NYSE:ABT)

CAPS Members Bullish on CMED Also Bullish on

Suntech Power (NYSE:STP)

CAPS Members Bearish on CMED Also Bearish on

China Mobile (NYSE:CHL)
China Finance Online (NASDAQ:JRJC)

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

On CAPS, 99% of the 461 All-Star members who have rated China Medical believe the stock will outperform the S&P 500 going forward. These bulls include mrindependent and TSIF, both of whom are ranked in the top 2% of our community.

Just last week, mrindependent tapped the stock as a cheap way to play some healthy tailwinds:

Despite remarkable technology and remarkable historic profitability and sales, China Medical Technologies is available for less than 7 times forward earnings and less than 2 times book value. [Jim Jubak] claims the Chinese government is trying to expand the country's health care system. This company should benefit from that policy.

In an earlier pitch, TSIF also diagnosed the situation:

Strong medical company in one of the fastest growing markets in the world. Medical procedures that appeal strongly to the small, but growing percent of Chinese affluent consumers. [In vitro diagnostics] in particular are very valuable in this market. ... If they lock into anything they can get approved in the USA market they will really grow, until then the growth potential, low P/E, strong margin, decent cash flow, and debt, (taken in context), make them a strong play.

What do you think about China Medical, 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. Johnson & Johnson is a Motley Fool Income Investor pick. Suntech and China Finance are recommendations of Rule Breakers. The Fool's disclosure policy always gets a perfect score.