Why Westar Energy Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electric utility Westar Energy has earned a respected four-star ranking.

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

Westar facts

Headquarters (founded)

Topeka, Kan. (1924)

Market Cap

$4.1 billion

Industry

Electric utilities

Trailing-12-Month Revenue

$2.3 billion

Management

CEO Mark Ruelle

CFO Anthony Somma

Return on Capital (average, past 3 years)

9.5%

Cash/Debt

$5.6 million / $3.4 billion

Dividend Yield

4.1%

Competitors


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

On CAPS, 96% of the 4,521 members who have rated Westar believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, hend6, succinctly summed up Westar bull case for our community:

As the market might slow, an energy company is poised to stay strong. Consistent earnings with a nice dividend yield, albeit a high payout ratio. That can be expected from this industry though. Balance sheet leans toward a low current ratio, but a high ratio of long-term assets-to-liabilities is comforting. We'll see how the market fares in the next year and keep holding on or let go at that time.

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

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The article Why Westar Energy Is Poised to Outperform originally appeared on Fool.com.

Motley Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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