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NEX Group (NEX Group) Earnings Yield (Joel Greenblatt) % : 3.68% (As of Mar. 2018)


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What is NEX Group Earnings Yield (Joel Greenblatt) %?

NEX Group's Enterprise Value for the quarter that ended in Mar. 2018 was $5,497.9 Mil. NEX Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2018 was $201.4 Mil. NEX Group's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2018 was 3.68%.

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

NEXGY's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Capital Markets industry.
Industry Median: 2.41
* 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) %. NEX Group's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2018 was -13.07%. 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.


NEX Group Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for NEX Group'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.

NEX Group Earnings Yield (Joel Greenblatt) % Chart

NEX Group Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.47 3.94 2.48 6.28 3.68

NEX Group Semi-Annual Data
Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18
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 2.48 - 6.28 - 3.68

Competitive Comparison of NEX Group's Earnings Yield (Joel Greenblatt) %

For the Capital Markets subindustry, NEX Group'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.


NEX Group's Earnings Yield (Joel Greenblatt) % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, NEX Group's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

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



NEX Group 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.

NEX Groups Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2018 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=205.307/5497.944
=3.73 %

For company reported semi-annually or annually, GuruFocus only calculate annual data for Earnings Yield (Joel Greenblatt) and apply the annual figure to corresponding quarter.



NEX Group  (GREY:NEXGY) 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.


NEX Group Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of NEX Group's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


NEX Group (NEX Group) Business Description

Industry
Traded in Other Exchanges
N/A
Address
NEX Group PLC provides electronic execution, risk mitigation, messaging, broking and information services for wholesale market participants. The Company's reportable segments include NEX Markets and NEX Optimisation. The company acts as an intermediary for FX and fixed income products through the Group's electronic platforms. It is also involved in a non-advisory capacity as principals in the matched purchase and sale of financial instruments between clients and provides technology development services.

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