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Unum Group Forward Rate of Return (Yacktman) %

: 18.03% (As of Jun. 2022)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Unum Group's forward rate of return for was 18.03%.

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

UNM' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 10.31   Med: 19.09   Max: 59.92
Current: 16.32

During the past 13 years, Unum Group's highest Forward Rate of Return was 59.92. The lowest was 10.31. And the median was 19.09.

UNM's Forward Rate of Return (Yacktman) % is ranked worse than
52.4% of 250 companies
in the Insurance industry
Industry Median: 17.46 vs UNM: 16.32

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.


Unum Group Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Unum Group'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.

Unum Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.72 24.19 29.55 20.80 20.36

Unum Group Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Forward Rate of Return (Yacktman) % 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 Premium Member Only Premium Member Only Premium Member Only 15.54 18.74 20.36 16.84 18.03

Competitive Comparison

For the Insurance - Life subindustry, Unum Group'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.

   

Unum Group Forward Rate of Return (Yacktman) % Distribution

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

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



Unum Group 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).

Unum Group's Forward Rate of Return of Jun. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=5.38761905/34.02+0.0219
=18.03 %

* 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.


Unum Group  (NYSE:UNM) 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.


Unum Group Forward Rate of Return (Yacktman) % Related Terms

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


Unum Group Business Description

Unum Group logo
Industry
Traded in Other Exchanges
Address
1 Fountain Square, Chattanooga, TN, USA, 37402
Unum Group is a provider of group and individual income protection insurance products in the United States, the United Kingdom, Poland, and other countries. It is the largest domestic disability insurer, with the majority of premiums generated from employer plans. The company also offers a complementary portfolio of other insurance products, including long-term care insurance, life insurance, and employer- and employee-paid group benefits. It has the following operating business segments: Unum US, Unum International, and Colonial Life. The majority of the revenue is earned from the Unum US segment. The firm markets its products primarily through brokers.
Executives
King Gale V. director 123 SOUTH FRONT STREET MEMPHIS TN 38103
Till Mark Paul officer: EVP & CEO Designate, Unum Intl 1 FOUNTAIN SQUARE LAW DEPARTMENT (E7N200) CHATTANOOGA TN 37402
Pashley Cherie officer: SVP, Chief Accounting Officer 1 FOUNTAIN SQUARE LAW DEPT. 7N200 CHATTANOOGA TN 37402
Pyne Christopher W officer: EVP, Group Benefits 1 FOUNTAIN SQUARE LAW DEPT. (7N200) CHATTANOOGA TN 37402
Leiper Martha officer: EVP, Chief Investment Officer 9800 FREDERICKSBURG ROAD SAN ANTONIO TX 78288
Zabel Steven Andrew officer: EVP & Chief Financial Officer 1 FOUNTAIN SQUARE LAW DEPT. (7N200) CHATTANOOGA TN 37402
Keaney Timothy F director 1 FOUNTAIN SQUARE LAW DEPT. 7S730 CHATTANOOGA TN 37402
Devore Susan D. director C/O PREMIER, INC. 13034 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Egan Cynthia director 7117 BELLONA AVENUE BALTIMORE MD 21212
Bunting Theodore H Jr director P. O. BOX 61000 NEW ORLEANS LA 70161
Shammo Francis director 1 FOUNTAIN SQUARE CHATTANOOGA TN 37402
Echevarria Joseph director 225 LIBERTY STREET NEW YORK NY 10286
O Hanley Ronald P director C/O UNUM GROUP, 1 FOUNTAIN SQUARE LAW DEPT. 7S730 CHATTANOOGA TN 37402
Bhasin Puneet officer: Chief Info & Digital Officer 1001 FANNIN, SUITE 4000 HOUSTON TX 77002
Cross Susan Lee director XL HOUSE ONE BERMUDIANA ROAD HAMILTON D0 HM 11

Unum Group Headlines

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