EMC Insurance Group (EMC Insurance Group) Earnings Yield % : 4.17% (As of Apr. 27, 2024)

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What is EMC Insurance Group Earnings Yield %?

The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

As of today (2024-04-27), the stock price of EMC Insurance Group is $36.01. EMC Insurance Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2019 was $1.50. Therefore, EMC Insurance Group's earnings yield of today is 4.17%.

The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. EMC Insurance Group's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2019 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

EMC Insurance Group Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

EMC Insurance Group's Earnings Yield for today is calculated as

Earnings Yield	=	Earnings per Share (Diluted) (TTM)	/	Share Price
	=	1.500	/	36.01
	=	4.17 %

EMC Insurance Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2019 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.500 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

Earnings Yield

Net Income

Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.

EMC Insurance Group (NAS:EMCI) Earnings Yield % Explanation

If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.

Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.

Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.

EMC Insurance Group Earnings Yield % Related Terms

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EMC Insurance Group (EMC Insurance Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » EMC Insurance Group Inc (NAS:EMCI) » Definitions » Earnings Yield %

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Traded in Other Exchanges

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Address

717 Mulberry Street, Des Moines, IA, USA, 50309

Website

http://www.emcins.com

EMC Insurance Group Inc is a United States based insurance provider that focusses on non-life insurance products. It derives significant revenues from its property and casualty insurance products, which it sells through its subsidiaries company. Its secondary source of revenue is its reinsurance segment. The group manages its reinsurance business through its subsidiary, EMC Reinsurance company, which sells commercial lines of property and casualty insurance products to small and medium-sized businesses.

Executives