What is Mead Johnson Nutrition Co Earnings Yield (Joel Greenblatt) %?
Mead Johnson Nutrition Co's Enterprise Value for the quarter that ended in Mar. 2017 was $18,092 Mil.
Mead Johnson Nutrition Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2017 was $838 Mil. Mead Johnson Nutrition Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 4.75%.
The historical rank and industry rank for Mead Johnson Nutrition Co's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
MJN's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 4.99 * 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) %. Mead Johnson Nutrition Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2017 was 5.67%. 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.
Mead Johnson Nutrition Co Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Mead Johnson Nutrition Co'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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Mead Johnson Nutrition Co Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of Mead Johnson Nutrition Co's Earnings Yield (Joel Greenblatt) %
For the Packaged Foods subindustry, Mead Johnson Nutrition Co'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.
Mead Johnson Nutrition Co's Earnings Yield (Joel Greenblatt) % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Mead Johnson Nutrition Co's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Mead Johnson Nutrition Co's Earnings Yield (Joel Greenblatt) % falls into.
Mead Johnson Nutrition Co 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.
Mead Johnson Nutrition Cos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2016 is calculated as
Mead Johnson Nutrition Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $838 Mil.
Mead Johnson Nutrition Co (NYSE:MJN) 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.
Mead Johnson Nutrition Co Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Mead Johnson Nutrition Co's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mead Johnson Nutrition Co (Mead Johnson Nutrition Co) Business Description
Mead Johnson Nutrition makes, distributes, and markets pediatric nutrition products worldwide under a variety of brands, including Enfamil, its largest label, along with Sustagen, Enfagrow, and Nutramigen. Infant formula represented 59% of 2015 sales and children's nutrition 39%, with expectant and nursing mother nutrition and pediatric vitamins comprising the remainder. The company sells its products globally; 73% of sales were generated outside the United States in 2015. At about 30% of revenue, China is the company's largest market.
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