Why Guangshen Railway Is Poised to Keep Chuggin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese railroad operator Guangshen Railway has earned a coveted five-star ranking.

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

Guangshen facts

Headquarters (founded)

Shenzhen, China (1996)

Market Cap

$3.7 billion

Industry

Railroads

Trailing-12-Month Revenue

$2.4 billion

Management

General Manager Shen Yi (since 2008)

Chief Accountant Tang Xiangdong (since 2008)

Return on Equity (average, past 3 years)

6.4%

Cash/Debt

$870.8 million / $555.6 million

Dividend Yield

2.7%

Competitors

Cathay Pacific Airways

China Southern Airlines

MTR


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

On CAPS, 97% of the 738 members who have rated Guangshen believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, henbrobrice, succinctly summed up the Guangshen bull case for our community:

With due diligence and the necessity of rail in a growing economy, I think this should be a solid play. Its dividends (given on a yearly basis) have increased or been maintained for 5 straight years. Its P/E ratio is less than 16 so it has been fairly valued in my estimation.

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

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Guangshen Railway Is Poised to Keep Chuggin' originally appeared on Fool.com.

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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