Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, commercial vehicle leasing company AutoChina International
With that in mind, let's take a closer look at AutoChina's business and see what CAPS investors are saying about the stock right now.
|Market Cap||$470.5 million|
|Trailing-12-Month Revenue||$637.6 million|
Founder/Chairman/CEO Hui Li Yong
CFO Jason Wang
|Return on Equity (Average, Past 2 Years)||18.2%|
|Cash/Debt||$86.1 million / $324.1 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 64.5% of the 76 members who have rated AutoChina believe the stock will underperform the S&P 500 going forward. These bears include All-Stars GundersonGroup and TSIF, both of whom are ranked in the top 10% of our community.
Just last month, GundersonGroup raised a red flag on AutoChina's profit growth: "More negative operating cash flow in spite of record 'earnings', perhaps this is due to the bloated customer list of related and affiliated parties."
In fact, AutoChina sports a trailing-12-month free cash flow margin of -18%. Meanwhile, U.S. vehicle rental counterparts like Dollar Thrifty Automotive
CAPS All-Star TSIF also expressed skepticism over the shares:
AutoChina stock remains shaky. The low volume is protecting it and may continue to do so. The company has been questioned since it's inception on how it calculates it's lease profits on it's growing truck leasing business. It has deflected most of the criticism, but some is starting to stick. They have until August 15th to reply to the Nasdaq inquiry. ... As the second largest commercial leasing company in China one would think they could present their books in a clear, concise manner.
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