4-Star Stocks Poised to Pop: France Telecom
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, French telecommunications giant France Telecom (NYS: FTE) has earned a respected four-star ranking.
With that in mind, let's take a closer look at France Telecom's business and see what CAPS investors are saying about the stock right now.
France Telecom facts
|Headquarters (founded)||Paris (1990)|
|Market Cap||$38.7 billion|
|Industry||Integrated telecom services|
|Trailing-12-Month Revenue||$59.6 billion|
|Management||Chairman/CEO Stephane Richard |
CFO Gervais Pellissier
|Return on Equity (average, past 3 years)||11.9%|
|Cash/Debt||$11.9 billion / $55.2 billion|
Societe Francaise du Radiotelephone
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 725 members who have rated France Telecom believe the stock will outperform the S&P 500 going forward.
[W]hy did I just buy this stock? Because the valuation is cheap and I love the dividend. The payout ratio is 86% so considering how things are going I would not be surprised if it is cut this year. But still, even if the dividend is cut in half it will still yield ~5%. Also, despite the tough competitive situation I think there is some nice upside potential for when Europe eventually recovers.
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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 France Telecom and Vodafone. 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.