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 (2024-04-26), the stock price of Fox Chase Bancorp is $20.34.
Fox Chase Bancorp's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2016 was $0.85. Therefore, Fox Chase Bancorp'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) %. Fox Chase Bancorp's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2016 was 29.71%. 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.
Fox Chase Bancorp Earnings Yield % Calculation
Earnings yield is the reciprocal of the P/E Ratio.
Fox Chase Bancorp's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.849 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:
The earnings in the calculation is the Trailing Twelve Months earnings.
Fox Chase Bancorp (NAS:FXCB) 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.
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.
Fox Chase Bancorp Earnings Yield % Related Terms
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Fox Chase Bancorp (Fox Chase Bancorp) Business Description
Fox Chase Bancorp Inc is a Maryland corporation that was incorporated in March 2010. The Bank operates as a community-oriented financial institution offering traditional financial services to consumers and businesses in its market areas. The Bank attracts deposits from the general public and uses those funds to originate one- to four-family real estate, multi-family and commercial real estate, construction, commercial and consumer loans, which the Bank generally holds for investment. The largest segment of its loan portfolio is multi-family and commercial real estate loans. It offers fixed-rate and adjustable-rate mortgage loans secured by multi-family and commercial real estate to individuals and small businesses in its main market areas. Its multi-family and commercial real estate loans are generally secured by condominiums, apartment buildings and mixed-use properties with residential units, as well as office and retail space. It originates multi-family and commercial real estate loans with terms of up to 25 years. The second largest segment of its loan portfolio is residential mortgage loans, which enable borrowers to purchase or refinance existing homes, which are owner occupied. It offer fixed-rate and adjustable-rate loans with terms up to 30 years. It also offers commercial and industrial loans to professionals, sole proprietorships and small and mid-size businesses in its market area. It offers variety of consumer loans, including home equity loans and lines of credit, loans to individuals to purchase insurance policies, loans secured by certificate of deposits (share loans) and unsecured overdraft lines of credit. It competes with various financial institutions and credit unions operating in its market areas and, to a lesser extent, from other financial service companies such as brokerage firms and insurance companies. Its competition for loans comes mainly from financial institutions in its market areas, and, to a lesser extent, from other financial service providers such as mortgage companies, mortgage brokers and credit unions. As a savings and loan holding company, it is subject to Federal Reserve Board regulations, examinations, supervision, reporting requirements and regulations concerning its activities.
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