Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, animated-movie house DreamWorks Animation
With that in mind, let's take a closer look at DreamWorks' business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Glendale, Calif. (1985)|
|Market Cap||$1.5 billion|
|Industry||Movies and entertainment|
|Trailing-12-Month Revenue||$706.0 million|
|Management||Co-founder/CEO Jeffrey Katzenberg
CFO Lewis Coleman
|Return on Equity (average, past 3 years)||11.6%|
|Cash/Debt||$116.1 million / $0|
Blue Sky Studios
Pixar Animation Studios
Walt Disney Animation Studios
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 1,159 members who have rated DreamWorks believe the stock will outperform the S&P 500 going forward.
The price is on the low end of historical price/sales ratio and mid-range on price/earnings. They've weathered a prolonged drought of new releases and still have cash on the books with no debt. Television series through Nickelodeon and Netflix are adding to revenue and may have room for growth. The price should increase in the near future if they can get back on and maintain a more frequent feature film release schedule. In other words, the current problems are baked into the price and better times may be ahead.
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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 DreamWorks and Netflix. Try any of our Foolish newsletter services free for 30 days.