Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Isle of Capri Casinos (NASDAQ:ISLE) has received the dreaded one-star ranking.

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

Isle of Capri facts

Headquarters (founded)

St. Louis (1990)

Market Cap

$406.0 million


Casinos and Gaming

Trailing-12-Month Revenue

$1.06 billion


CEO James Perry (since 2008)

COO Virginia McDowell (since 2007)

5-Month Return


Return on Assets (average, last three years)



$114 million/$1.3 billion



Las Vegas Sands (NYSE:LVS)

CAPS Members Bearish on ISLE Also Bearish on

Lennar (NYSE:LEN)

Ford Motor (NYSE:F)

CAPS Members Bullish on ISLE Also Bullish on

Boyd Gaming (NYSE:BYD)

Melco Crown Entertainment (NASDAQ:MPEL)

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

Over on CAPS, some 47% of the 164 members who have rated Isle of Capri believe the stock will underperform the S&P 500 going forward. These bears include All-Star mrindependent, who is ranked in the top 7% of our community, and JakilaTheHunII.

Late last month, mrindependent used some simple common sense to swim off the Isle: "I think discretionary spending will continue to suffer. Thus, I believe this company's recent run-up is unjustified."

In a pitch from two days earlier, JakilaTheHunII expands on the stock as a good bet to eventually correct:

What makes [Isle of Capri] more intriguing as a red thumb is that it is no longer priced for bankruptcy. In fact, it's priced for relatively strong growth and recovery.

The first thing to analyze with [Isle of Capri] is their balance sheet. It is U-G-L-Y! [Isle of Capri] is levered to the tilt, has very little equity, and even that equity figure is propped up by a huge amount of goodwill and intangible assets. ...

Next items to analyze are earnings and cash flows. Earnings for [Isle of Capri] have not been overly impressive over the past three and a half years and even some of their good quarters are propped up by one-time items ("hurricane insurance recoveries"). ... I believe given the risks, uncertainty, and macroeconomic climate, it is worth closer to $7.

What do you think about Isle of Capri Casinos, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Melco is a Motley Fool Global Gains selection. The Fool's disclosure policy always gets a perfect score.