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 (2024-04-25), the stock price of Fresh Market is $28.51.
Fresh Market's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2016 was $1.37. Therefore, Fresh Market's earnings yield of today is 4.79%.
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) %. Fresh Market's Forward Rate of Return (Yacktman) % for the quarter that ended in Jan. 2016 was 18.58%. 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.
Fresh Market Earnings Yield % Calculation
Earnings yield is the reciprocal of the P/E Ratio.
Fresh Market's Earnings Yield for today is calculated as
Fresh Market's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.366 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:
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.
Fresh Market Earnings Yield % Related Terms
Thank you for viewing the detailed overview of Fresh Market's Earnings Yield % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fresh Market, Inc., is a Delaware corporation and it was founded in 1982. The Company is a specialty retailer focused on creating an extraordinary food shopping experience for its customers. It provides high-quality food products, with an emphasis on fresh, premium perishables and an uncompromising commitment to customer service. As of January 26, 2014, the Company operates 151 stores in 26 states. It offers fresh, carefully selected, high-quality food products focused on perishable categories. Examples of its offerings include hand-trimmed steaks that are aged for tenderness, fresh seafood delivered up to six times per week, hand-stacked produce that is colorfully displayed and French-style baguettes baked in-store each morning. The Company's stores average approximately 21,000 square feet, compared to the approximately 40,000 to 60,000 square foot stores operated by many conventional supermarkets. The Company's distribution strategy is to capitalize on the capabilities of best-in-class third-party logistics providers and, as such, it does not own warehouses, distribution facilities or transportation equipment. The Company outsources substantially all of its logistics functions to third-party distributors and vendors. Its trademarks, including its registered The Fresh Market, Experience the Food and TFM trademarks are valuable assets that reinforce its customers' favorable perception of its stores. The Company's competition varies and includes national conventional supermarkets such as Kroger and Safeway, regional supermarkets such as Harris Teeter and Publix, national superstores such as Wal-Mart and Target, alternative food retailers such as Whole Foods and Trader Joe's, and local supermarkets, natural foods stores, smaller specialty stores and farmers' markets. The Company's stores are subject to various local, state, federal and international laws, regulations and administrative practices affecting its business.
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