4-Star Stocks Poised to Pop: Power-One
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 (NAS: PWER) has earned a respected four-star ranking.
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|
|Competitors||Emerson Electric (NYS: EMR) |
General Electric (NYS: GE)
Siemens (NYS: SI)
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.
What do you think about Power-One, 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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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Emerson. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.