What is Heartland Payment Systems Earnings Yield (Joel Greenblatt) %?
Heartland Payment Systems's Enterprise Value for the quarter that ended in Dec. 2015 was $3,927 Mil.
Heartland Payment Systems's EBIT for the trailing twelve months (TTM) ended in Dec. 2015 was $152 Mil. Heartland Payment Systems's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2015 was 3.88%.
The historical rank and industry rank for Heartland Payment Systems's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
HPY's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Business Services industry.
Industry Median: 5.645 * Ranked among companies with meaningful Earnings Yield (Joel Greenblatt) % only.
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) %. Heartland Payment Systems's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2015 was 9.93%. 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.
Heartland Payment Systems Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Heartland Payment Systems'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.
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Heartland Payment Systems Earnings Yield (Joel Greenblatt) % Chart
For the Specialty Business Services subindustry, Heartland Payment Systems'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.
Heartland Payment Systems's Earnings Yield (Joel Greenblatt) % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Heartland Payment Systems's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Heartland Payment Systems's Earnings Yield (Joel Greenblatt) % falls into.
Heartland Payment Systems 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.
Heartland Payment Systemss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2015 is calculated as
Heartland Payment Systems's EBIT for the trailing twelve months (TTM) ended in Dec. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $152 Mil.
Heartland Payment Systems (NYSE:HPY) 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.
Heartland Payment Systems Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Heartland Payment Systems's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Heartland Payment Systems (Heartland Payment Systems) Business Description
Heartland Payment Systems Inc was incorporated in the state of Delaware on June 2000. The Company provides Card Payment Processing services to merchants in the United States which involves providing end-to-end electronic payment processing services to merchants. For this the Company undertakes merchant set-up and training, transaction authorization and electronic draft capture, clearing and settlement, merchant accounting, merchant assistance and support, and risk management. The Company sells and rents point-of-sale devices. The Company's customers fall into two categories: small and mid-sized merchants, or SME merchants and Network Services merchants, which are predominately petroleum industry merchants of all sizes. Further, the Company provides additional services such as Heartland School Solutions, Heartland Ovation Payroll, Campus Solutions, Micropayments, and Heartland Marketing Solutions. As of December 31, 2013, the Company provided card payment processing services to 166,697 active SME merchants located across the United States. In addition to settling card transactions, Network Services processes a wide range of payment transactions for its predominantly petroleum customer base, including providing 2.3 billion transaction authorizations through its front-end card processing systems in 2013. The Card Payment Processing revenue from SME merchants and Network Services merchants is recurring in nature. The Company enters into three year service contracts with its SME merchants and three to five year agreements with Network Services merchants. The Company's merchant base include restaurants, brick and mortar retailers, hotel and lodgings, automotive sales and repair shops, convenience and liquor stores, professional service providers and gas stations. As of December 31, 2013 the Company served 42,069 independent restaurants and had partner agreements with approximatley 250 trade associations. The Company has developed number of payment processing systems to increase the operating efficiencies such as HPS Exchange, VAPS and NWS and Passport. The Company undertakes procedures such as Merchant Monitoring, Investigation and Loss Prevention, Underwriting and Collateral to minimize the transaction fraud. The Company's marketing efforts are focused on industries in which its direct sales model is effective on merchants who are typically on location, interact with customers, value a local sales presence, and consult with trade associations and other civic groups to make purchasing decisions.
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