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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Matrix Composites & Engineering's forward rate of return for was 0.00%.
The historical rank and industry rank for Matrix Composites & Engineering's Forward Rate of Return (Yacktman) % or its related term are showing as below:
During the past 13 years, Matrix Composites & Engineering's highest Forward Rate of Return was 17.30. The lowest was 17.30. And the median was 17.30.
ASX:MCE's Forward Rate of Return (Yacktman) % is not ranked *
in the Construction industry.
Industry Median: 8.59 * Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
Unlike the Earnings Yield %, 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.
Unlike the Earnings Yield, 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.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Matrix Composites & Engineering Forward Rate of Return (Yacktman) % Related Terms
Matrix Composites & Engineering Forward Rate of Return (Yacktman) % Historical Data
* 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.
ASX:MCE vs PWR, FIX, EME: Forward Rate of Return (Yacktman) % Comparison
For the Engineering & Construction subindustry, Matrix Composites & Engineering's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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.
Matrix Composites & Engineering Forward Rate of Return (Yacktman) % vs Construction Industry
For the Construction industry and Industrials sector, Matrix Composites & Engineering's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Matrix Composites & Engineering's Forward Rate of Return (Yacktman) % falls into.
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* 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.
What does a Forward Rate of Return (Yacktman) % of 0.00% mean?
Matrix Composites & Engineering (ASX:MCE) has a Forward Rate of Return (Yacktman) % of 0.00% as of Jun. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Matrix Composites & Engineering and its competitors. Over the past decade, Matrix Composites & Engineering's Forward Rate of Return (Yacktman) % has ranged from 17.30 to 17.30. According to the industry distribution chart, Matrix Composites & Engineering ranks #999999 out of 1295 companies in the Construction industry.
Is Matrix Composites & Engineering's Forward Rate of Return (Yacktman) % too high?
Matrix Composites & Engineering's current Forward Rate of Return (Yacktman) % is 0.00%. Over the past 10 years, this metric has ranged from a low of 17.30 to a high of 17.30. Based on the distribution chart, Matrix Composites & Engineering ranks #999999 out of 1295 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Matrix Composites & Engineering has a GF Score™ of 15/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Matrix Composites & Engineering's Forward Rate of Return (Yacktman) % compare to PWR and FIX?
According to the Construction industry distribution chart, Matrix Composites & Engineering ranks #999999 out of 1295 companies for Forward Rate of Return (Yacktman) %. This places Matrix Composites & Engineering in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.59. Historically, Matrix Composites & Engineering's own Forward Rate of Return (Yacktman) % has ranged from 17.30 to 17.30 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Construction company?
The median Forward Rate of Return (Yacktman) % among Construction companies is 8.59, based on 1,295 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Matrix Composites & Engineering and its competitors. For the Construction industry, the median Forward Rate of Return (Yacktman) % is 8.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Matrix Composites & Engineering's current Forward Rate of Return (Yacktman) % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Matrix Composites & Engineering stock overvalued right now?
Based on GuruFocus' analysis, Matrix Composites & Engineering (ASX:MCE) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.29, compared to a current price of A$0.40 — trading 37.1% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 0.00%. Matrix Composites & Engineering's overall GF Score™ is 15/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Matrix Composites & Engineering (ASX:MCE), the current Forward Rate of Return (Yacktman) % is 0.00% as of Jun. 2025. 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 Matrix Composites & Engineering (ASX:MCE) Overvalued in 2026?
Based on GuruFocus' analysis, Matrix Composites & Engineering stock appears to be overvalued.
The current stock price of A$0.40 is trading 37.1% above its estimated GF Value™ of A$0.29.
GuruFocus considers Matrix Composites & Engineering to be Significantly Overvalued.
Key valuation signals for ASX:MCE:
Forward Rate of Return (Yacktman) %: 0.00%
GF Value™: A$0.29 vs. price of A$0.40 (37.1% above fair value)
No single metric tells the full story. See the ASX:MCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Matrix Composites & Engineering Ltd is a manufacturer of engineered products and services for the offshore oil and gas, civil and infrastructure, and defence industry. The group is also involved in the businesses of manufacturing and supplying capital drilling equipment, consisting of syntactic foam buoyancy; manufacturing and supply of subsea umbilical risers and flowline (SURF) ancillary equipment and associated services; and manufacturing and supply of well construction products, including centralizers and conductors. Its products consist of buoyancy systems, epoxy resin systems, energy absorption systems, reinforced thermoplastics, and others. Geographically, it derives maximum revenue from Brazil and rest from Australia, Japan, China, the United States of America, and other regions.
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