Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese clean tech specialist SmartHeat
With that in mind, let's take a closer look at SmartHeat's business and see what CAPS investors are saying about the stock right now.
SmartHeat facts
| Headquarters (Founded) | Shenyang City, China (2002) |
| Market Cap | $158.4 million |
| Industry | Industrial machinery |
| Trailing-12-Month Revenue | $109.64 million |
| Management |
Chairman/CEO Jun Wang CFO Zhijuan Guo |
| Return on Equity (Average, Past 2 Years) | 20.9% |
| Cash/Debt | $15.1 million / $5.99 million |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 598 members who have rated SmartHeat believe the stock will outperform the S&P 500 going forward. These bulls include iamthecountry and All-Star devoish, who is ranked in the top 1% of our community.
Two months ago, iamthecountry tapped SmartHeat as a particularly potent pick: "[SmartHeat] is a clean tech play and a china growth play. This company is profitable and the stock price is fairly low."
In fact, despite its attractive growth prospects, SmartHeat sports a forward P/E of just 5.5. That represents a clear discount to gorilla industry peers like Emerson Electric
CAPS All-Star devoish elaborates on the bull case:
We are not talking about a complicated product here, we are basically talking about radiators. These heat exchangers are being sold as being more energy efficient, and so, the higher energy costs go, the cheaper these products become. A heat exchanger can be as simple as an aluminum radiator in a car. These heat exchangers are made of stainless steel, and can be resized on the job to perform better for the task at hand.
The claimed efficiency should drive sales, until the cost of stainless outpaces aluminum. Afterward there is the designed in ease of servicing and better durability to drive sales. And finally some functions probably demand stainless as opposed to cheaper materials. They have cash, sales, and a product.
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