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Origin Enterprises Forward Rate of Return (Yacktman) %

: 6.75% (As of Jul. 2021)
View and export this data going back to 2011. Start your Free Trial

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Origin Enterprises's forward rate of return for was 6.75%.

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

ORENF' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 0.11   Med: 5.05   Max: 16.35
Current: 5.14

During the past 13 years, Origin Enterprises's highest Forward Rate of Return was 16.35. The lowest was 0.11. And the median was 5.05.

ORENF's Forward Rate of Return (Yacktman) % is ranked worse than
56.7% of 1217 companies
in the Consumer Packaged Goods industry
Industry Median: 7.78 vs ORENF: 5.14

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.


Origin Enterprises Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Origin Enterprises'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.

Origin Enterprises Annual Data
Trend Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.95 0.78 3.04 2.03 6.75

Origin Enterprises Semi-Annual Data
Jul12 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22
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 - 2.03 - 6.75 -

Competitive Comparison

For the Farm Products subindustry, Origin Enterprises'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.

   

Origin Enterprises Forward Rate of Return (Yacktman) % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Origin Enterprises's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Origin Enterprises 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).

Origin Enterprises's Forward Rate of Return of Jul. 2021 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0.298/3.95+0.0003
=7.57 %

* 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.


Origin Enterprises  (OTCPK:ORENF) 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.


Origin Enterprises Forward Rate of Return (Yacktman) % Related Terms

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


Origin Enterprises Business Description

Origin Enterprises logo
Industry
Traded in Other Exchanges
Address
4-6 Riverwalk, Citywest Business Campus, Dublin, IRL, 24
Origin Enterprises PLC is an agri-service business with operations throughout Europe. It provides technologies and strategic products to support food production systems for primary food producers. The company acts as an advisor for varietal selection, nutrition, crop protection, and other techniques to improve crop performance. Fertilizers, animal feed, seeds, and other agricultural supplements are sold to enhance farming productivity. It delivers products to farms from local distribution centers, and agronomists study the timing of applications to achieve the best results for customers. Farm visitations happen throughout each year, and soil and tissue analysis is conducted to either stop deficiencies or prevent future occurrences.

Origin Enterprises Headlines

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