Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, female condom maker Female Health
With that in mind, let's take a closer look at Female Health's business and see what CAPS investors are saying about the stock right now.
Female Health facts
| Headquarters (Founded) | Chicago (1896) |
| Market Cap | $131.5 million |
| Industry | Personal products |
| Trailing-12-Month Revenue | $20.38 million |
| Management |
Chairman/CEO O. B. Parrish CFO Donna Felch |
| Return on Capital (Average, Past 3 Years) | 29.2% |
| Cash/Debt | $3.64 million / $9,000 |
| Dividend Yield | 4.2% |
| Competitors |
Church & Dwight |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 975 members who have rated Female Health believe the stock will outperform the S&P 500 going forward. These bulls include BuffettJunior1 and StockEse.
Just last month, BuffettJunior1 touched on Female Health's solid fundamentals:
Its not trading at a discount, but its still trading at an attractive price. ... What really impresses me about this company is its high return on capital. I'm always willing to pay more for companies with high return on capital, because they almost always outperform the market in the long run.
In fact, Female Health's three-year average return on capital of 29.2% tops that of rival condom maker Church & Dwight (11.1%), as well as other personal products stocks like Procter & Gamble
CAPS member StockEse expands on the outperform argument:
HIV/AIDS, other STDs, and unplanned/unwanted pregnancy are often linked to women's difficulty in negotiating condom use with partners. The female condom allows women to sidestep the negotiation entirely, taking matters into their own hands. ... FHCO has a huge potential market and could very well make enormous gains over time.
More importantly: Solid fundamentals, steady growth, no long term debt.
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