Why Cott is Poised to Underperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, beverage producer Cott has received an alarming one-star ranking.
With that in mind, let's take a closer look at Cott and see what CAPS investors are saying about the stock right now.
Cott facts
Headquarters (founded) | Mississauga, Canada (1955) |
Market Cap | $777.6 million |
Industry | Soft drinks |
Trailing-12-Month Revenue | $2.3 billion |
Management | CEO Jerry Fowden CFO Jay Wells |
Return on Equity (average, past 3 years) | 10.5% |
Cash/Debt | $88.1 million / $603.9 million |
Dividend Yield | 2.9% |
Competitors | Coca-Cola Dr Pepper Snapple Group PepsiCo |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 39% of the 267 members who have rated Cott believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, samhorn31, succinctly summed up the Cott bear case for our community:
With margins getting beat up by increase price of material costs ie Aluminum and Sweetners, it will be hard for [Cott] to cut those costs. [Insider selling] is never a good sign. Cott also has a high level of debt but they do suggest a good paydown schedule.
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The article Why Cott is Poised to Underperform originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services recommend The Coca-Cola Company and PepsiCo. 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 Motley Fool has a disclosure policy.
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