Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, networking equipment maker Brocade Communications Systems (Nasdaq: BRCD) has earned a respected four-star ranking.

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

Brocade facts

Headquarters (Founded)

San Jose, Calif. (1995)

Market Cap

$2.55 billion


Communications equipment

Trailing-12-Month Revenue

$2.06 billion


CEO Michael Klayko (since 2005)

CFO Richard Deranleau (since 2006)

Return on Capital (Average, Past 3 Years)


Compound Annual Revenue Growth (Over Past 3 Years)


Cash / Debt

$501.1 million / $1.18 billion


Cisco Systems (Nasdaq: CSCO)

Hewlett-Packard (NYSE: HPQ)

QLogic (Nasdaq: QLGC)

Key Customers




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

On CAPS, 94% of the 677 members who have rated Brocade believe the stock will outperform the S&P 500 going forward. These bulls include amanalvi and All-Star TSIF, who is ranked in the top 1% of our community.

Just last week, amanalvi ensured Fools that Brocade isn't broken: "storage business is growing and with positive cash flow and developing market for its foundry branch company has a bright future. ... Not cheap but nice entry point for long term investment as fundamentals are improving."

In a pitch from two days ago, TSIF tapped the stock as too cheap to pass up:

In their favor, Brocade posted a small profit last quarter and is managing to keep cash flow positives and some margins on their network equipment. The external network is growing, but Brocade does not seem to have the right mix of products to take full advantage of the expansion. Margins and revenue are up and cash is strong, although part of the cash increase is from new borrowing and additional stock issues. While I would rather see stronger product growth and more institutional investing, it appears to me that the share price of Brocade has fallen below reasonable valuations metrics, but it needs to get some cutting edge products from its large R&D outlay.

What do you think about Brocade, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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