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Elkem ASA (OSTO:ELKO) Earnings Yield (Joel Greenblatt) % : 1.50% (As of Sep. 2024)


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What is Elkem ASA Earnings Yield (Joel Greenblatt) %?

Elkem ASA's Enterprise Value for the quarter that ended in Sep. 2024 was kr24,569 Mil. Elkem ASA's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 was kr370 Mil. Elkem ASA's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2024 was 1.50%.

The historical rank and industry rank for Elkem ASA's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

OSTO:ELKo' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -0.72   Med: 13.4   Max: 55.15
Current: 1.6

During the past 10 years, the highest Earnings Yield (Joel Greenblatt) of Elkem ASA was 55.15%. The lowest was -0.72%. And the median was 13.40%.

OSTO:ELKo's Earnings Yield (Joel Greenblatt) % is ranked worse than
66.58% of 1580 companies
in the Chemicals industry
Industry Median: 3.68 vs OSTO:ELKo: 1.60

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Elkem ASA's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2024 was 15.05%. 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.


Elkem ASA Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Elkem ASA's Earnings Yield (Joel Greenblatt) % 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.

Elkem ASA Earnings Yield (Joel Greenblatt) % Chart

Elkem ASA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.02 3.43 25.00 49.26 7.24

Elkem ASA Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial 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 14.29 7.24 0.27 -0.66 1.50

Competitive Comparison of Elkem ASA's Earnings Yield (Joel Greenblatt) %

For the Specialty Chemicals subindustry, Elkem ASA's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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.


Elkem ASA's Earnings Yield (Joel Greenblatt) % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Elkem ASA's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Elkem ASA's Earnings Yield (Joel Greenblatt) % falls into.



Elkem ASA Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Elkem ASAs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=1692/23702.0574
=7.14 %

Elkem ASA's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was kr370 Mil.



Elkem ASA  (OSTO:ELKo) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Elkem ASA Earnings Yield (Joel Greenblatt) % Related Terms

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Elkem ASA Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Elkem ASA (OSTO:ELKo) » Definitions » Earnings Yield (Joel Greenblatt) %
Traded in Other Exchanges
Address
Drammensveien 169, Oslo, NOR, 0277
Elkem ASA offers advanced material solutions shaping a better and more sustainable future. The company develops silicones, silicon products, and carbon solutions by combining natural raw materials, renewable energy, and human ingenuity. Elkem helps its customers create and improve essential innovations like electric mobility, digital communications, health, and personal care as well as smarter and more sustainable cities. Elkem has three reportable segments namely Silicones, Silicon Products, and Carbon Solutions. It generates most of the revenue from the Silicones segment.

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