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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 (2024-04-28), the stock price of Dorman Products is $89.23. Dorman Products's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $4.10. Therefore, Dorman Products's earnings yield of today is 4.59%.
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) %. Dorman Products's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 13.93%. 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.
Earnings yield is the reciprocal of the P/E Ratio.
Dorman Products's Earnings Yield for today is calculated as
Earnings Yield | = | Earnings per Share (Diluted) (TTM) | / | Share Price |
= | 4.100 | / | 89.23 | |
= | 4.59 % |
Dorman Products's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.100 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:
Earnings Yield | = | Net Income | / | Market Cap |
The earnings in the calculation is the Trailing Twelve Months earnings.
Dorman Products (NAS:DORM) Earnings Yield % Explanation
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.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.
Be Aware
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.
Thank you for viewing the detailed overview of Dorman Products's Earnings Yield % provided by GuruFocus.com. Please click on the following links to see related term pages.
G. Michael Stakias | director | C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Lindsay Hunt | officer: Pres and CEO, Specialty Vehicl | 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Brian Borradaile | officer: SVP, Strategy & Corp Dev | 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Eric Luftig | officer: Senior Vice President, Product | 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Jeffery Darby | officer: SVP, Sales | C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Steven L Berman | director, 10 percent owner, officer: President, COO | |
James Darrell Thomas | director | 3700 JUNEAU AVENUE, MILWAUKEE WI 53208 |
John J Gavin | director | GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084 |
Donna M. Long | officer: SVP, CIO | 3400 EAST WALNUT STREET, COLMAR PA 18915 |
John Mcknight | officer: SVP, Operations | 3400 EAST WALNUT STREET, COLMAR PA 19103 |
Paul E Anderson | officer: President, Heavy Duty | 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Scott Leff | officer: SVP, CHRO | 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Michael Kealey | officer: SVP, Product | C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Lisa M Bachmann | director | 300 PHILLIPI ROAD, COLUMBUS OH 43228 |
Joseph P. Braun | officer: SVP and General Counsel | C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915 |
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