What is Steel Excel Forward Rate of Return (Yacktman) %?
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Steel Excel's forward rate of return for was 0.00%.
The historical rank and industry rank for Steel Excel's Forward Rate of Return (Yacktman) % or its related term are showing as below:
SXCL's Forward Rate of Return (Yacktman) % is not ranked *
in the Oil & Gas industry.
Industry Median: 12.74 * Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
Unlike the Earnings Yield %, 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.
Steel Excel Forward Rate of Return (Yacktman) % Historical Data
The historical data trend for Steel Excel's Forward Rate of Return (Yacktman) % can be seen below:
* 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.
* Premium members only.
Steel Excel Forward Rate of Return (Yacktman) % Chart
Competitive Comparison of Steel Excel's Forward Rate of Return (Yacktman) %
For the Oil & Gas Equipment & Services subindustry, Steel Excel's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Steel Excel's Forward Rate of Return (Yacktman) % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Steel Excel's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Steel Excel's Forward Rate of Return (Yacktman) % falls into.
Steel Excel Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
Steel Excel's Forward Rate of Return of Jun. 2016 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
12.13047619
/
10.5
+
0.0653
=
122.06 %
* 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.
Steel Excel (OTCPK:SXCL) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five 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.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Steel Excel Forward Rate of Return (Yacktman) % Related Terms
Thank you for viewing the detailed overview of Steel Excel's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Steel Excel Inc formerly known as Adaptec Inc was incorporated in California on 1981. The Company together with it subsidiaries operates in two segments Energy and Sports. The Company's Energy business provides drilling and production services to the oil and gas industry. Its Sports business provides event-based sports services and other health-related services. The Company also continues to identify business acquisition opportunities in other unrelated industries. The Energy business provides various services to exploration and production companies in the oil and gas business. The services provided include well completion and recompletion, snubbing, flow testing, well maintenance and workover, down hole pumping, plug and abatement, and rental of auxiliary equipment. The Sports business provides baseball facility services, soccer camps and leagues, and strength and conditioning services. The baseball facility services, which include tournaments, camps, field rentals and player and umpire instruction, are provided at its facility that is equipped with four full-sized outdoor fields, three smaller youth-sized outdoor fields, and an indoor facility. Soccer camps and leagues are run at facilities owned by municipalities or schools and are run either in conjunction with local youth soccer leagues or as a stand-alone offering. Strength and conditioning services are provided at the two CrossFit facilities. The Company's businesses are subject to multiple federal, state, and local laws and regulations pertaining to worker safety, the handling of hazardous materials, transportation standards, and the environment.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SXCL has been successfully added to your 