Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless telecom giant China Mobile
With that in mind, let's take a closer look at China Mobile's business and see what CAPS investors are saying about the stock right now.
China Mobile facts
|Headquarters (Founded)||Central, Hong Kong (1997)|
|Market Cap||$196.06 billion|
|Trailing-12-Month Revenue||$70.4 billion|
CEO Yue Li (since June 2010)
CFO Xue Taohai (since July 2002)
|Return on Equity (Average, Past 3 Years)||25.6%|
|Cash/Debt||$47.65 billion / $5.05 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Earlier this year, umps15 tapped China Mobile as a particularly cheap call: "P/E is low compared to companies similar to its size, as with dividend yield. There is 700 million cellphones in China, and population is 1.3 billion. With past earning records, I see plenty of room for growth here."
China Mobile's dominance of the steadily growing Chinese wireless market and reasonable valuation continue to support its four-star CAPS status. Currently, China Mobile even trades at a forward P/E (10.7) discount to direct rivals China Telecom (14.2) and China Unicom (31.7), as well as U.S. counterparts AT&T
CAPS member shanelofgren elaborates on the bull case:
I think that Chinese urbanization, income growth and cultural shifts toward higher demand for technology will persist at their current very high rate (and this rate might grow slightly or decline slightly). ... I think that demand for data will accelerate as increased wealth, increased coverage and increased urbanization all contribute to demand. Thus voice revenue will begin to flatten out, data revenue will grow and, overall, cash flow will continue to grow, though perhaps at a slower rate than before. Given their low P/E and high prior growth rates, [China Mobile] still looks like a good buy.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. China Mobile is a Motley Fool Global Gains pick. The Fool owns shares of China Mobile. Try any of our Foolish newsletter services free for 30 days.
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