CGIP (Celadon Group) Forward Rate of Return (Yacktman) %: -24.87% (As of Dec. 2016)

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What is Celadon Group Forward Rate of Return (Yacktman) %?

Celadon Group CGIP Forward Rate of Return (Yacktman) % is -24.87% as of Dec. 2016.

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Celadon Group's forward rate of return for was -24.87%.

The historical rank and industry rank for Celadon Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:

CGIP's Forward Rate of Return (Yacktman) % is not ranked *
in the Transportation industry.
Industry Median: 10.84
* 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.


Celadon Group  (OTCPK:CGIP) Forward Rate of Return (Yacktman) % Explanation

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.


Celadon Group Forward Rate of Return (Yacktman) % Related Terms


Celadon Group Forward Rate of Return (Yacktman) % Historical Data

* Premium members only.

The historical data trend for Celadon Group's Forward Rate of Return (Yacktman) % 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.

Celadon Group Forward Rate of Return (Yacktman) % Chart

Celadon Group Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.41 21.17 17.42 2.35 -18.06

Celadon Group Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
Forward Rate of Return (Yacktman) % 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 -9.42 -10.23 -18.06 -23.33 -24.87

Celadon Group Forward Rate of Return (Yacktman) % Competitor Comparison

For the Trucking subindustry, Celadon Group'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.


Celadon Group Forward Rate of Return (Yacktman) % vs Transportation Industry

For the Transportation industry and Industrials sector, Celadon Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Celadon Group's Forward Rate of Return (Yacktman) % falls into.



Celadon Group Forward Rate of Return (Yacktman) % Calculation

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).

Celadon Group's Forward Rate of Return of Dec. 2016 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=-1.85542857/7.15+0.0108
=-24.87 %

* 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 -24.87% mean?
Celadon Group (CGIP) has a Forward Rate of Return (Yacktman) % of -24.87% as of Dec. 2016. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Celadon Group and its competitors.
Is Celadon Group's Forward Rate of Return (Yacktman) % too high?
Celadon Group's current Forward Rate of Return (Yacktman) % is -24.87%.
How does Celadon Group's Forward Rate of Return (Yacktman) % compare to competitors?
Celadon Group's Forward Rate of Return (Yacktman) % of -24.87% can be compared against companies in the Transportation industry. The industry median Forward Rate of Return (Yacktman) % is 10.84. 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 Transportation company?
The median Forward Rate of Return (Yacktman) % among Transportation companies is 10.84, based on 755 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 Celadon Group and its competitors. For the Transportation industry, the median Forward Rate of Return (Yacktman) % is 10.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Celadon Group's current Forward Rate of Return (Yacktman) % is -24.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Celadon Group stock overvalued right now?
Celadon Group (CGIP) has a current Forward Rate of Return (Yacktman) % of -24.87%. The current Forward Rate of Return (Yacktman) % is -24.87%. 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 Celadon Group (CGIP), the current Forward Rate of Return (Yacktman) % is -24.87% as of Dec. 2016. 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.

Celadon Group Business Description

Address 9503 East 33rd Street, One Celadon Drive, Indianapolis, IN, USA, 46235
Celadon Group Inc is a United States based company truckload freight transportation provider. Through its subsidiaries, the company provides long haul, regional, local, dedicated, intermodal, temperature-protect, and expedited freight service across the United States, Canada, and Mexico. It also offers freight brokerage services, freight management, as well as supply chain management solutions, including logistics, warehousing, and distribution. The operating segments of the company are Asset-based, Asset-light and Equipment leasing and services.