LHSW (Lianhe Sowell International Group) Forward Rate of Return (Yacktman) %: % (As of Mar. 2026)

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LHSW Lianhe Sowell International Group Ltd LHSW
19 GF Score
Price $0.43
! 5 Warning Signs
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What is Lianhe Sowell International Group Forward Rate of Return (Yacktman) %?

Lianhe Sowell International Group LHSW +0.67% 19 Forward Rate of Return (Yacktman) % is % as of Mar. 2026. GuruFocus rates LHSW with a GF Score™ of 19/100. The stock has 5 warning signs investors should review. Among 1,382 Software companies, Lianhe Sowell International Group ranks worse than 72358.83% on this metric.

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

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

LHSW's Forward Rate of Return (Yacktman) % is not ranked *
in the Software industry.
Industry Median: 13.255
* 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.


Lianhe Sowell International Group  (NAS:LHSW) 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.


Lianhe Sowell International Group Forward Rate of Return (Yacktman) % Related Terms


Lianhe Sowell International Group Forward Rate of Return (Yacktman) % Historical Data

* Premium members only.

The historical data trend for Lianhe Sowell International 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.

Lianhe Sowell International Group Forward Rate of Return (Yacktman) % Chart

Lianhe Sowell International Group Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Forward Rate of Return (Yacktman) %
- - - - -

Lianhe Sowell International Group Semi-Annual Data
Sep24 Mar25 Sep25 Mar26
Forward Rate of Return (Yacktman) % - - - -

LHSW vs BLIN, YQAI, OBAI: Forward Rate of Return (Yacktman) % Comparison

For the Software - Infrastructure subindustry, Lianhe Sowell International 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.


Lianhe Sowell International Group Forward Rate of Return (Yacktman) % vs Software Industry

For the Software industry and Technology sector, Lianhe Sowell International Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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


LHSW
19GF Score
Lianhe Sowell International Group Ltd LHSW
Forward Rate of Return (Yacktman) % is just one metric. See GF Score™, valuation, warning signs, and more.
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Lianhe Sowell International 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).

Lianhe Sowell International Group's Forward Rate of Return of Mar. 2026 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/2.432+0
=0.00 %

* 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 % mean?
Lianhe Sowell International Group (LHSW) has a Forward Rate of Return (Yacktman) % of % as of Mar. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Lianhe Sowell International Group and its competitors. According to the industry distribution chart, Lianhe Sowell International Group ranks #999999 out of 1382 companies in the Software industry.
Is Lianhe Sowell International Group's Forward Rate of Return (Yacktman) % too high?
Lianhe Sowell International Group's current Forward Rate of Return (Yacktman) % is %. Based on the distribution chart, Lianhe Sowell International Group ranks #999999 out of 1382 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Lianhe Sowell International Group has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Lianhe Sowell International Group's Forward Rate of Return (Yacktman) % compare to BLIN and YQAI?
According to the Software industry distribution chart, Lianhe Sowell International Group ranks #999999 out of 1382 companies for Forward Rate of Return (Yacktman) %. This places Lianhe Sowell International Group in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 13.26. 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 Software company?
The median Forward Rate of Return (Yacktman) % among Software companies is 13.26, based on 1,382 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 Lianhe Sowell International Group and its competitors. For the Software industry, the median Forward Rate of Return (Yacktman) % is 13.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lianhe Sowell International Group's current Forward Rate of Return (Yacktman) % is %. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhe Sowell International Group stock overvalued right now?
Lianhe Sowell International Group (LHSW) has a current Forward Rate of Return (Yacktman) % of %. The current Forward Rate of Return (Yacktman) % is %. Lianhe Sowell International Group's overall GF Score™ is 19/100 with 5 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 Lianhe Sowell International Group (LHSW), the current Forward Rate of Return (Yacktman) % is % as of Mar. 2026. 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.

Lianhe Sowell International Group Business Description

Address No. 3388 Binhai Avenue, 15th Floor, Sannuo Smart Building, Binhai Community, Nanshan District, Shenzhen, CHN
Lianhe Sowell International Group Ltd is a holding company and operates its business through its subsidiary. It is a provider of machine vision products and solutions in China that invent and integrate technologies and solutions that address some of the critical manufacturing and distribution challenges, such as precision and accuracy required in manufacturing of electronic products. The company categorize machine vision products in four categories based on their application settings: Industrial Machine Vision, Artificial Intelligence (Face Recognition and AI Behavior Analysis), Intelligent Weak Current (Building Intelligence and Intelligent Transportation) and Electronic Customs Clearance.
19GF Score

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Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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