Why GrafTech Is Ready to Rebound

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, graphite products company GrafTech International has earned a respected four-star ranking.

With that in mind, let's take a closer look at GrafTech and see what CAPS investors are saying about the stock right now.

GrafTechfacts

Headquarters (founded)

Parma, Ohio (1886)

Market Cap

$937.1 million

Industry

Electrical components and equipment

Trailing-12-Month Revenue

$1.3 billion

Management

Chairman/CEO Craig Shular

CFO Lindon Robertson

Return on Equity (average, past 3 years)

13.3%

Cash/Debt

$17.3 million / $571.1 million

Competitors

SGL CARBON

Showa Denko

Tokai Carbon


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 939 members who have rated GrafTech believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star joryko, succinctly summed up the GrafTech bull case for our community:

Recent sell-off presents a huge opportunity for long-term investors.

-P/B of only 0.7 and very manageable debt
-World leading supplier of graphite electrodes, make 15% of the world's supply
-No alternatives to these electrodes gives them a huge moat
-Faces competition from smaller companies, including China, who produces 65% of the world's supply
-Vertically integrated through its production of needle coke

Waiting to see a P/B closer to 1.5 before I would even consider selling this growing company.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, GrafTech may not be your top choice.

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The article Why GrafTech Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of GrafTech International. 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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