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The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.
The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Nippon Light Metal Holdings Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 6.85%. 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.
Nippon Light Metal Holdings Co (TSE:5703) Earnings Yield % Explanation
If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.
If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.
Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.
Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.
Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.
Nippon Light Metal Holdings Co Earnings Yield % Related Terms
Nippon Light Metal Holdings Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円253.203 Mil.
* 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.
It can also be calculated from the numbers for the whole company:
Nippon Light Metal Holdings Co (TSE:5703) has a Earnings Yield % of 9.58% as of Jul. 26, 2026. Earnings Yield equals per-share earnings divided by share price. It is the inverse of the price-earnings ratio. View historical data on Nippon Light Metal Holdings Co and its competitors.
Is Nippon Light Metal Holdings Co's Earnings Yield % too high?
Nippon Light Metal Holdings Co's current Earnings Yield % is 9.58%. Overall, Nippon Light Metal Holdings Co has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Light Metal Holdings Co's Earnings Yield % compare to AA and CENX?
Nippon Light Metal Holdings Co's Earnings Yield % of 9.58% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield % for a Metals & Mining company?
A good Earnings Yield % depends on the Metals & Mining industry context. However, Earnings Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield % mean?
A high Earnings Yield % can signal that a stock is expensive relative to its fundamentals. Earnings Yield equals per-share earnings divided by share price. It is the inverse of the price-earnings ratio. View historical data on Nippon Light Metal Holdings Co and its competitors. Nippon Light Metal Holdings Co's current Earnings Yield % is 9.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Light Metal Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Light Metal Holdings Co (TSE:5703) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,968.78, compared to a current price of 円2,644.00 — trading 34.3% above its estimated fair value. The current Earnings Yield % is 9.58%. Nippon Light Metal Holdings Co's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield % calculated?
Earnings Yield % is calculated from a company's financial statements. For Nippon Light Metal Holdings Co (TSE:5703), the current Earnings Yield % is 9.58% as of Jul. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nippon Light Metal Holdings Co (TSE:5703) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Light Metal Holdings Co stock appears to be overvalued.
The current stock price of 円2,644.00 is trading 34.3% above its estimated GF Value™ of 円1,968.78.
GuruFocus considers Nippon Light Metal Holdings Co to be Significantly Overvalued.
Key valuation signals for TSE:5703:
Earnings Yield %: 9.58%
GF Value™: 円1,968.78 vs. price of 円2,644.00 (34.3% above fair value)
No single metric tells the full story. See the TSE:5703 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Light Metal Holdings Co Business Description
Nippon Light Metal Holdings Co Ltd manufactures and sells alumina, aluminum, and fabricated products to customers worldwide. The company produces alloys, spark plug components, car suspension parts and aluminum sheets for the automotive industry and rolling stocks and truck cargo gates for the transportation industry. Nippon also manufactures other alloys, aluminum and alumina products for multiple end customers including the electrical, food, and construction industries. The company has operations throughout Asia as well as the United States and France.
74GF Score
Get the complete analysis for TSE:5703
Earnings Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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