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Randolph Bancorp (NAS:RNDB) Forward Rate of Return (Yacktman) %

: 20.14% (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. Randolph Bancorp's forward rate of return for was 20.14%.

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

RNDB' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -0.31   Med: 6.1   Max: 22.25
Current: 19.91

During the past 8 years, Randolph Bancorp's highest Forward Rate of Return was 22.25. The lowest was -0.31. And the median was 6.10.

RNDB's Forward Rate of Return (Yacktman) % is not ranked
in the Banks industry.
Industry Median: 17.54 vs RNDB: 19.91

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.


Randolph Bancorp Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Randolph Bancorp'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.

Randolph Bancorp Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only - - - 2.83 16.21

Randolph Bancorp 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 6.02 4.79 16.21 18.88 20.14

Competitive Comparison

For the Banks - Regional subindustry, Randolph Bancorp'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.

   

Randolph Bancorp Forward Rate of Return (Yacktman) % Distribution

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

* The bar in red indicates where Randolph Bancorp's Forward Rate of Return (Yacktman) % falls in comparison to its industry or sector. The grey bar indicates the Forward Rate of Return (Yacktman) %'s extreme value range as defined by GuruFocus.



Randolph Bancorp 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).

Randolph Bancorp's Forward Rate of Return of Jun. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=3.06152381/26.45+0.0857
=20.14 %

* 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.


Randolph Bancorp  (NAS:RNDB) 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 Book Value 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.


Randolph Bancorp Forward Rate of Return (Yacktman) % Related Terms

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


Randolph Bancorp (NAS:RNDB) Business Description

Randolph Bancorp logo
Industry
Traded in Other Exchanges
N/A
Address
10 Cabot Place, Stoughton, MA, USA, 02072
Randolph Bancorp Inc is a bank holding company of Envision Bank. The company is engaged in providing financial services to individuals, families, and small to mid-size businesses. The business of the company includes accepting deposits from the public and investing those deposits, commercial real estate loans, construction loans, investment securities, and consumer loans. The firm also offers deposit accounts, certificates of deposit, and money market accounts. The company has two reporting segments; Envision Bank, which is the key revenue generating segment; and Envision Mortgage. Envision Mortgage consists primarily of gains on loan origination and sales activities, loan servicing income and interest income on loans held for sale and residential construction loans.
Executives
Friedman Martin S. 10 percent owner 7901 JONES BRANCH DR. SUITE 210 MCLEAN VA 22102
Kaupp Evelyn director C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072
Perry Ronald K director 320 NORWOOD PARK SOUTH NORWOOD MA 02062
Scott Pamela C director 151 BRADLEE AVENUE SWAMPSCOTT MA 01907
Parent William M director, officer: President & CEO C/O GRAIL INVESTMENT CORP. 767 THIRD AVENUE, 21ST FLOOR NEW YORK NY 10017
Messmore Lauren officer: EVP & CFO 320 NORWOOD PARK SOUTH NORWOOD MA 02062
Curry Nancy J. officer: SVP/Commercial Lending C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072
Fraser Peter J. officer: Senior Vice President C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072
O'connor John J. Iii director C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072
Mcdonough James P director, officer: See Remarks C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072
Donovan Paul R director CHAIRMAN'S VIEW 300 GRANITE ST., SUITE 406 BRAINTREE MA 02184
Phillips Richard A. Sr. director C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072
Dwyer Martie M. officer: See Remarks C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072
Devlin Michael K officer: See Remarks C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072
Thaxter Donna L. officer: See Remarks C/O RANDOLPH BANCORP, INC. 10 CABOT PLACE STOUGHTON MA 02072

Randolph Bancorp (NAS:RNDB) Headlines

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