Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electricity giant Exelon
With that in mind, let's take a closer look at Exelon's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Chicago (1887)|
|Market Cap||$27.6 billion|
|Trailing-12-Month Revenue||$19.24 billion|
|Management||CEO John Rowe (since 2004)
CFO Matthew Hilzinger (since 2005)
|Return on Equity (Average, Past 3 Years)||21.8%|
|Cash / Debt||$487 million / $13.56 billion|
American Electric Power
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
About two months ago, AlpineFlower tapped Exelon as a particularly timely bargain: "Nuclear took a hit with the Fukushima disaster, however this is still a long-term stock to invest in. Lots of value and great dividend."
Exelon even boasts a robust three-year average operating margin of 27.6%. That's clearly higher than that of listed competitors like AEP (19.5%), NextEra (18.4%), and PPL (19.8%).
CAPS member tekennedy elaborates on the bull case:
Exelon, as the largest provider of nuclear electricity generation, has a number of advantages other competitors don't have. Nuclear power has a lower cost than other types of generation and these operators have higher margins and higher returns on equity as a result. There are barriers for new competitors to build a nuclear plant as well because of regulatory issues, long build times for a nuclear plant, and high costs to build.
Secondly I think management here is top-notch as they have refused to overpay for acquisitions they have persued over the last decade. Growth will likely occur from expansions of capacity through current generators and from general commodity price expansion, but acquisitions could play a part as well. The dividend should represent a fair amount of future returns but I expect earnings growth and dividend growth to be high over the next decade.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of and creating a covered strangle position in Exelon. The Motley Fool owns shares of NextEra. Try any of our Foolish newsletter services free for 30 days.