Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, media and merchandising company Martha Stewart Living Omnimedia (NYSE:MSO) has received the dreaded one-star ranking.

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

Martha Stewart facts

Headquarters (Founded)

New York City (1996)

Market Cap

$374.9 million



Trailing-12-Month Revenue

$246.8 million


Chairman / CEO Charles Koppelman

Founder / Executive Officer Martha Stewart

Trailing-12-Month Return on Equity


Cash / Debt

$53.8 million / $17.5 million

6-Month Return



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CAPS Members Bearish on MSO Also Bearish on

Ford Motor (NYSE:F)

CAPS Members Bullish on MSO Also Bullish on


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

On CAPS, 43.4% of the 302 members who have rated Martha Stewart believe the stock will underperform the S&P 500 going forward. These bears include All-Stars mrindependent and kristm, both of whom are ranked in the top 2% of our community.

Just last week, mrindependent noted that Martha Stewart "is losing money and analysts do not expect profits this year or next year." Our All-Star concludes: "In the last month the company has rallied 88% based on ??? -- maybe it is simple euphoria over the perception of an end to the recession. This company is not worth 2.8 times book value."

In a pitch from the same day, kristm also sees the stock as a recipe for disastrous returns. Here's an excerpt:

Take away the branded merchandise and all you have left is essentially a magazine company, a satellite radio channel, and a handful of TV shows. Magazine publishing is in a freefall right now, satellite radio is always on the edge of going away, and the TV offerings aren't that great. Not to mention the questionable deals with multiple CEO's and a founder/namesake who has an arguably damaged reputation and gets way way more compensation than she's worth. This company is, at best, a questionable investment. Oh and the economy as a whole is in free-fall, discouraging people from buying premium-branded products associated with Martha Stewart.

What do you think about Martha Stewart Living, 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. Wal-Mart and Home Depot are Motley Fool Inside Value picks. Google is a recommendation of Rule Breakers. The Fool's disclosure policy always gets a perfect score.