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Sun Bancorp (Sun Bancorp) Forward Rate of Return (Yacktman) % : 0.00% (As of Sep. 2017)


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What is Sun Bancorp Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Sun Bancorp's forward rate of return for was 0.00%.

The historical rank and industry rank for Sun Bancorp's Forward Rate of Return (Yacktman) % or its related term are showing as below:

SNBC's Forward Rate of Return (Yacktman) % is not ranked *
in the Banks industry.
Industry Median: 18.02
* 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.


Sun Bancorp Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Sun Bancorp'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.

Sun Bancorp Forward Rate of Return (Yacktman) % Chart

Sun Bancorp Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.41 11.00 - - -

Sun Bancorp Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Forward Rate of Return (Yacktman) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Sun Bancorp's Forward Rate of Return (Yacktman) %

For the Banks - Regional subindustry, Sun Bancorp'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.


Sun Bancorp's Forward Rate of Return (Yacktman) % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Sun Bancorp's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Sun Bancorp's Forward Rate of Return (Yacktman) % falls into.



Sun Bancorp 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).

Sun Bancorp's Forward Rate of Return of Sep. 2017 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=0.64152381/24.95+0.0136
=3.93 %

* 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.


Sun Bancorp  (NAS:SNBC) 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 Book Value 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.


Sun Bancorp Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Sun Bancorp's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sun Bancorp (Sun Bancorp) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Sun Bancorp Inc is a holding company of its principal subsidiary, Bank of the United States. Through its subsidiary, it provides community banking services to consumers, small businesses and mid-size companies. Its deposit services include savings accounts, business checking and money market accounts, certificates of deposit, and cash management solutions such as online banking, electronic bill payment and wire transfer services, lockbox services, remote deposit and controlled disbursement services. The company also provides lending services to businesses include term loans, lines of credit and commercial mortgages. Additionally, it also provides home equity term loans, home equity lines of credit and installment loans. The majority of the company's revenue comes from interest income.
Executives
Patricia M Schaubeck officer: EVP & General Counsel C/O SUFFOLK BANCORP, 4 WEST SECOND STREET, P.O. BOX 9000, RIVERHEAD NY 11901
Sidney R Brown director 226 LANDIS AVENUE, VINELAND NJ 08360
Nicos Katsoulis officer: EVP/Chief Lending Officer C/O STATE BANCORP, INC., TWO JERICHO PLAZA, JERICHO NY 11753
Michele B Estep officer: EVP/Chief Administrative Offic, other: of Sun National Bank 226 LANDIS AVENUE, VINELAND NJ 08360
Grace C Torres director C/O PGIM INVESTMENTS, 655 BROAD STREET, NEWARK NJ 07102
Anthony R Coscia director C/O INTERCHANGE FINANCIAL SERVICES CORP, PARK 80 W PLAZA TWO, SADDLE BROOK NJ 07663
Neelesh Kalani officer: SVP/Chief Accounting Officer SUN BANCORP, INC., 226 LANDIS AVENUE, VINELAND PA 19087
Thomas R Brugger officer: EVP/Chief Financial Officer 1130 BERKSHIRE BLVD, WYOMISSING PA 19610
Keith Stock director 1819 A WEST ST ANNAPOLIS MD 21401
William J Marino director COMPUTER HORIZONS, 49 OLD BLOOMFIELD AVE, MOUNTAIN LAKES NJ 07046
Thomas M Obrien director, officer: President & CEO C/O STATE BANK OF LONG ISLAND, 2 JERICHO PLAZA, JERICHO NY 11753
Alberino J Celini officer: EVP/Chief Risk Officer, other: of Sun National Bank 226 LANDIS AVENUE, VINELAND NJ 08360
Steven A Kass director 226 LANDIS AVENUE, VINELAND NJ 08360
Thomas X Geisel director, officer: President & CEO 400 RELLA BOULEVARD, MONTEBELLO NY 10901
Ross Wilbur L Jr director, 10 percent owner 328 EL VEDADO ROAD, PALM BEACH FL 33480