Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, water and air purifying systems specialist Calgon Carbon
With that in mind, let's take a closer look at Calgon's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Pittsburgh (1942)|
|Market Cap||$857.7 million|
|Trailing-12-Month Revenue||$444.7 million|
CEO John Stanik (since February 2003)
CFO Stevan Schott (since July 2010)
|Return on Equity (Average, Past 3 Years)||12.8%|
|Cash/Debt||$45.0 million / $23.6 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 308 members who have rated Calgon believe the stock will outperform the S&P 500 going forward. These bulls include CAPS member Reddrummer and All-Star Geofiz, who is ranked in the top 10% of our community.
This past summer, Reddrummer summed up the Calgon bull case: "Boring but profitable small company with good growth prospects. ... [P]eople always need clean water and air. As regulation on pollutions increase, so should [Calgon's] profits."
Calgon remains one of our community's favorite plays on the distressing trends in water availability and drinkability around the world. With a market cap of less than a billion, Calgon's three-year compound revenue growth (10.4%) tops that of much larger rivals like Siemens (5.6%), GE (-1.3%), 3M (2.3%), and Donaldson (-0.7%). Calgon also sports a lower debt/equity ratio than each of those same rivals, so it seems like a relatively safe bet, as well.
CAPS All-Star Geofiz elaborates:
A leader in a field that is destined to expand in the coming years. Revenues and [free cash flow] have increased steadily over the past couple of years, while margins have been squeezed just a bit. Beautiful balance sheet, with low, well-covered debt. [Calgon], along with [Flowserve
(NYSE: FLS)] and a small, speculative investment in [Tri-Tech Holding], comprise my 'water portfolio.'
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