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5-Star Stocks Poised to Pop: Jinpan

By Brian D. Pacampara, CFA - Updated Apr 6, 2017 at 10:32PM

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Market-trouncing returns could be written in these five stars.

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cast-resin transformer maker Jinpan International (Nasdaq: JST) has earned a coveted five-star ranking.

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

Jinpan facts

Headquarters (Founded)

Haikou, China (1993)

Market Cap

$197 million

Industry

Electrical components and equipment

Trailing-12-Month Revenue

$144.06 million

Management

Chairman/CEO Zhiyuan Li (since 1997)

CFO Mark Du (since 2002)

Return on Equity (Average, Past 3 Years)

17.9%

Cash/Debt

$27.5 million / $40.8 million

Dividend Yield

1.2%

Competitors

ABB (NYSE: ABB)

Siemens (NYSE: SI)

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

On CAPS, 98% of the 1,337 members who have rated Jinpan believe the stock will outperform the S&P 500 going forward. These bulls include AnchorageAK and All-Star FoolSolo, who is ranked in the top 10% of our community.

Late last year, AnchorageAK tapped Jinpan as a particularly powerful pick: "Power transformer manufacturer based in China, serving the Chinese market. As China's economy continues to develop, expect solid growing demand for power infrastructure investments to benefit Jinpan. Pays a reasonable dividend."

Currently, Jinpan even sports a cheapish forward P/E of 7.7. That represents a clear discount to transformer-making industrial gorillas ABB (13.0), General Electric (NYSE: GE) (12.8), and Siemens (13.5).

CAPS All-Star FoolSolo expands on the outperform argument:

Playing a sort of hunch on this one. Jinpan is well positioned in green energy in China, and they have really lagged the market for the past year. But given their dividend, and what they are focused on, it is a good long-term prospect. This further adds to my diversification into China.

What do you think about Jinpan, 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!

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Stocks Mentioned

Jinpan International Limited Stock Quote
Jinpan International Limited
JST.DL
General Electric Company Stock Quote
General Electric Company
GE
$67.08 (4.70%) $3.01
Siemens Aktiengesellschaft Stock Quote
Siemens Aktiengesellschaft
SIEGY
$54.82 (4.48%) $2.35
ABB Stock Quote
ABB
ABB
$26.77 (2.25%) $0.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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