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Xoom (XOOM) Earnings Yield (Joel Greenblatt) % : -5.60% (As of Sep. 2015)


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What is Xoom Earnings Yield (Joel Greenblatt) %?

Xoom's Enterprise Value for the quarter that ended in Sep. 2015 was $831.7 Mil. Xoom's EBIT for the trailing twelve months (TTM) ended in Sep. 2015 was $-46.6 Mil. Xoom's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2015 was -5.60%.

The historical rank and industry rank for Xoom's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

XOOM's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Credit Services industry.
Industry Median: 0.87
* 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) %. Xoom's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2015 was 0.00%. 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.


Xoom Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Xoom'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.

Xoom Earnings Yield (Joel Greenblatt) % Chart

Xoom Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial - - - 1.01 -4.75

Xoom Quarterly Data
Dec09 Dec10 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Earnings Yield (Joel Greenblatt) % 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 0.69 -4.75 -7.01 -4.71 -5.60

Competitive Comparison of Xoom's Earnings Yield (Joel Greenblatt) %

For the Credit Services subindustry, Xoom'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.


Xoom's Earnings Yield (Joel Greenblatt) % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Xoom's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Xoom's Earnings Yield (Joel Greenblatt) % falls into.



Xoom 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.

Xooms Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2014 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=-24.906/524.766928
=-4.75 %

Xoom's EBIT for the trailing twelve months (TTM) ended in Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-46.6 Mil.



Xoom  (NAS:XOOM) 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.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Xoom Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Xoom's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Xoom (XOOM) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Xoom Corp was formed on June 15, 2001 and is backed by Sequoia Capital, New Enterprise Associates, SVB Capital and Fidelity Ventures. The company is an online consumer-to-consumer money transfer company based in San Francisco. It provides consumer remittance services in close to 30 countries. The company's customers use its website to send money to friends and families in these countries. Its offerings include bank deposit services, cash pickup service, as well as home delivery services. It also provides money transfer services to banks, money transfer companies, and retailers, banks in Asia, Europe, and Latin America, among others. It generates revenues from transaction fees charged to customers and foreign exchange spreads on transactions where the payout currency is other than U.S. dollars.
Executives
Capital Xi Sequoia 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Kevin Hartz director C/O XOOM CORPORATION, 100 BUSH STREET, SUITE 300, SAN FRANCISCO CA 94104
Ryno Blignaut officer: Chief Financial Officer C/O XOOM CORPORATION, 100 BUSH STREET, SUITE 300, SAN FRANCISCO CA 94104
Roelof Botha director, 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sc Xi Management Llc 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sequoia Capital Xi Principals Fund 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sequoia Technology Partners Xi 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Murray J Demo director
C Richard Kramlich director 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Peter Thomas Killalea director C/O XOOM CORPORATION, 425 MARKET STREET, 12TH FLOOR, SAN FRANCISCO CA 94105
Keith Rabois director C/O YELP! INC., 706 MISSION ST., SAN FRANCISCO CA 94103
Alison Davis director 255 FISERV DRIVE, BROOKFIELD WI 53045
Forest Baskett 10 percent owner
Ryan D Drant 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Peter J Barris 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202

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