Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power management solutions provider Power-One
With that in mind, let's take a closer look at Power-One's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Camarillo, Calif. (1973)|
|Market Cap||$444 million|
|Trailing-12-Month Revenue||$1.12 billion|
|Management||CEO Richard Thompson (since 2008)
CFO Gary Larsen (since 2010)
|Return on Equity (Average, Past 3 Years)||19.3%|
|Cash/Debt||$182.7 million / $36 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
Just last month, markbudge1 tapped the stock as a potent bargain opportunity:
The inverter market is growing and so will Power-One. It has a high ROI and ROE and little debt. Once good news hits, it will skyrocket.
In fact, Power-One sports a particularly paltry P/E of 4. That represents a clear discount to much larger rivals like Emerson (16), GE (12), and Siemens (11).
CAPS member jed71 elaborates on the Power-One bull case:
I am definitely not what you would call a "greenie", but this technology is here to stay. The more efficient it becomes, the more I believe it will become a part of daily life. ...
Here you have a company that makes power inverters that convert DC energy from a solar or wind farm, and make it into usable AC energy on a power grid. These converters are highly efficient (from what I have read) and actually do a nice job reducing power conversion losses. I recently read that they have / are continuing to design commercial models that increases efficiency from large solar / wind farms. Pretty neat stuff.
The financials aren't bad at all either, considering this is a "green tech" company (which tend to be on the pricey side). ... With operating margins approaching 25%, I am thinking it might be time to put some real money into this one.
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