Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, flash memory specialist SanDisk
With that in mind, let's take a closer look at SanDisk's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Milpitas, Calif. (1988)|
|Market Cap||$9.2 billion|
|Industry||Computer storage and peripherals|
|Trailing-12-Month Revenue||$5.23 billion|
Co-Founder/CEO Sanjay Mehrotra
CFO Judy Bruner
|Return on Capital (Average, Past 3 Years)||6.6%|
|Cash/Debt||$2.7 billion / $1.8 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last month, jeffgnewman succinctly summed up the SanDisk bull case: "Far too cheap, growth in tablets, growth in new markets, price stabilization for flash memory."
In fact, SanDisk sports a cheapish forward P/E of 8.4. That represents a discount to competitors like Micron (10.6), Sony (12.9), and STEC (10.5).
CAPS member MagicDiligence elaborates on the bargain opportunity:
The two big growth markets in consumer electronics are smartphones and tablets. Both are built on flash memory. A major trend in PCs is toward ultra-thin designs, like Apple's (AAPL) Macbook Air. Those designs depend on flash memory (not hard drives) for storage. SSD flash drives are an important part of data center design due to their speed and low power requirements. SanDisk is the purest play in flash memory. Revenues are growing at near 20% annual rates, and margins have improved sustainably due to a shift into product-embedded flash rather than consumer SD cards. So why is this cyclical stock selling at historically low price-to-sales multiples? It doesn't add up.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days.