Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer RadioShack (NYSE: RSH) has received the dreaded one-star ranking.

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

RadioShack facts

Headquarters (Founded)

Fort Worth, Texas (1899)

Market Cap

$2.8 billion


Computer and electronics retail

Trailing-12-Month Revenue

$4.3 billion


CEO Julian Day (since 2006)

CFO James Gooch (since 2006)

Return on Equity (Average, Past 3 Years)


Compound Annual Revenue Growth (Over Past 3 Years)



$871.8 million / $661.7 million

1-Year Return



Wal-Mart (NYSE: WMT)

Best Buy (NYSE: BBY)

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

On CAPS, 53% of the 594 members who have rated RadioShack believe the stock will underperform the S&P 500 going forward. These bears include All-Star greaterajax and Akula765.

Late last year, greaterajax summed up the bear case with one simple sentence: "Best Buy, Wal-Mart, and the Internet will combine to grind [RadioShack] into dust."

Traditionally, RadioShack's bread-and-butter has been a specialized focus on smaller, higher-margin products (batteries and accessories). But with Best Buy and Wal-Mart becoming more apt at accessorizing their big purchase items over the years, the big-box retailers have basically morphed into a one-stop consumer electronics shop. And according to CAPS member Akula765, that pressure is causing RadioShack to lose sight of its strengths:

RadioShack is a business built on customer service. That's the only reason they've survived this long. They can't compete with big box stores on price or inventory selection. They've always made it up by being knowledgeable and helpful. But when you start paying people like they're gas station attendants, they're concern for the customer is going to be comparable to a gas station attendant -- very little. All the knowledgeable or talented sales people are leaving in droves. Same with experienced store managers. And no body with knowledge or talent is very interested in filling the void.

It's not just retailers, but really any business: You have to take care of the customer. And to do that you also have to take care of the people that interact with the customer. RadioShack is failing on this, and it is the key to their well being.

All this slashing pay makes for a nice balance sheet now. But it's going to blow up in their faces eventually.

What do you think about RadioShack, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!