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Emeco Holdings Forward Rate of Return (Yacktman) %

: 0.00% (As of Jun. 2021)
View and export this data going back to 2013. Start your Free Trial

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

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

OTCPK:EOHDF' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -13.09   Med: -2.89   Max: -0.34
Current: -13.09

-13.09
-0.34

During the past 13 years, Emeco Holdings's highest Forward Rate of Return was -0.34. The lowest was -13.09. And the median was -2.89.

OTCPK:EOHDF's Forward Rate of Return (Yacktman) % is ranked lower than
99.99% of the 79 Companies
in the Business Services industry.

( Industry Median: 7.29 vs. OTCPK:EOHDF: -13.09 )

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.


Emeco Holdings Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Emeco Holdings'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.

Emeco Holdings Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Emeco Holdings Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21
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 - - - - -

Competitive Comparison

For the Rental & Leasing Services subindustry, Emeco Holdings'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.

   

Emeco Holdings Forward Rate of Return (Yacktman) % Distribution

For the Business Services industry and Industrials sector, Emeco Holdings's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Emeco Holdings 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).

Emeco Holdings's Forward Rate of Return of Jun. 2021 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=-0.18083333/0.72+0.0383
=-21.29 %

* 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.


Emeco Holdings  (OTCPK:EOHDF) 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.


Emeco Holdings Forward Rate of Return (Yacktman) % Related Terms

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


Emeco Holdings Business Description

Emeco Holdings logo
Industry
Traded in Other Exchanges
Address
Level 3, 71 Walters Drive, Osborne Park, Perth, WA, AUS, 6017
Emeco Holdings Ltd owns and operates a fleet of original equipment manufacturer machines to deliver equipment rental solutions. Its reportable segments are Australian Rental that provides a wide range of earthmoving equipment to customers in Australia, Australian Workshops which is engaged in providing maintenance services to customers in Australia and Pit N Portal which provides a range of mining services solutions and associated services to customers in Australia.. The company generates a majority of its revenue from the Australian Rental Segment. Geographically, it generates a majority of its revenue from Australia.

Emeco Holdings Headlines

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