What is Keurig Green Mountain Earnings Yield (Joel Greenblatt) %?
Keurig Green Mountain's Enterprise Value for the quarter that ended in Dec. 2015 was $13,810 Mil.
Keurig Green Mountain's EBIT for the trailing twelve months (TTM) ended in Dec. 2015 was $703 Mil. Keurig Green Mountain's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2015 was 5.09%.
The historical rank and industry rank for Keurig Green Mountain's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
GMCR's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 4.965 * Ranked among companies with meaningful Earnings Yield (Joel Greenblatt) % only.
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Keurig Green Mountain's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2015 was 30.49%. 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.
Keurig Green Mountain Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Keurig Green Mountain's Earnings Yield (Joel Greenblatt) % 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.
Keurig Green Mountain Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of Keurig Green Mountain's Earnings Yield (Joel Greenblatt) %
For the Packaged Foods subindustry, Keurig Green Mountain's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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.
Keurig Green Mountain's Earnings Yield (Joel Greenblatt) % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Keurig Green Mountain's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Keurig Green Mountain's Earnings Yield (Joel Greenblatt) % falls into.
Keurig Green Mountain Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Keurig Green Mountains Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Sep. 2015 is calculated as
Keurig Green Mountain's EBIT for the trailing twelve months (TTM) ended in Dec. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $703 Mil.
Keurig Green Mountain (NAS:GMCR) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Keurig Green Mountain Earnings Yield (Joel Greenblatt) % Related Terms
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Keurig Green Mountain (Keurig Green Mountain) Business Description
Keurig Green Mountain Inc is a Delaware Corporation formed in July 1993. The Company is engaged in the coffee and coffeemaker businesses in the United States and Canada. It sells Keurig Single Cup brewers and roast high-quality Arabica bean coffees including single-origin, Fair Trade Certified, certified organic, flavored, limited edition and proprietary blends offered in K-Cup and Vue packs for use with its Keurig Single Cup brewers. The Company also offers traditional whole bean and ground coffee in other package types including bags, fractional packages and cans. In addition, it produces and sells other specialty beverages in portion packs including hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa and other dairy-based beverages. The Company manages its operations through three business segments, the Specialty Coffee business unit (SCBU), the Keurig business unit (KBU) and the Canadian business unit (CBU). Due to this combination, the results of U.S. operations, formerly reported in the SCBU and KBU segments, are reported in the Domestic segment and the results of Canadian operations are in the "Canada" segment. The Domestic segment sells single cup brewers and accessories, and sources, produces and sells coffee, hot cocoa, teas and other beverages in portion packs and coffee in more traditional packaging including bags and fractional packs to retailers including supermarkets, department stores, mass merchandisers, club stores, and convenience stores; to restaurants, hospitality accounts, office coffee distributors, and partner brand owners; and to consumers through Company websites. The Canada segment sells single cup brewers, accessories, and sources, produces and sells coffee, teas and other beverages in portion packs and coffee in more traditional packaging including bags, cans and fractional packs under a variety of brands to retailers including supermarkets, department stores, mass merchandisers, club stores, through office coffee services to offices, convenience stores, restaurants, hospitality accounts, and to consumers through its website. The Company's competitors in the coffee marketplace include large national and international companies and numerous local and regional companies.
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