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SMC (Summit Midstream) Forward Rate of Return (Yacktman) % : 7.82% (As of Mar. 2025)


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What is Summit Midstream Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Summit Midstream's forward rate of return for was 7.82%.

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

SMC' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.17   Med: 44.85   Max: 119.63
Current: 19.25

During the past 13 years, Summit Midstream's highest Forward Rate of Return was 119.63. The lowest was 3.17. And the median was 44.85.

SMC's Forward Rate of Return (Yacktman) % is ranked better than
57.47% of 562 companies
in the Oil & Gas industry
Industry Median: 16 vs SMC: 19.25

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.


Summit Midstream Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Summit Midstream'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.

* Premium members only.

Summit Midstream Forward Rate of Return (Yacktman) % Chart

Summit Midstream Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 81.49 51.06 35.10 9.00

Summit Midstream Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 14.75 7.05 11.94 9.00 7.82

Competitive Comparison of Summit Midstream's Forward Rate of Return (Yacktman) %

For the Oil & Gas Midstream subindustry, Summit Midstream'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.


Summit Midstream's Forward Rate of Return (Yacktman) % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Summit Midstream's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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


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Summit Midstream 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).

Summit Midstream's Forward Rate of Return of Mar. 2025 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=13.40609524/33.89+-0.3174
=7.82 %

* 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.


Summit Midstream  (NYSE:SMC) 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.


Summit Midstream Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Summit Midstream's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Summit Midstream Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Summit Midstream Corp (NYSE:SMC) » Definitions » Forward Rate of Return (Yacktman) %
Traded in Other Exchanges
N/A
Address
910 Louisiana Street, Suite 4200, Houston, TX, USA, 77002
Summit Midstream Corp is a value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets strategically located in unconventional resource basins, shale formations, in the continental U.S. It currently operates natural gas, crude oil and produced water gathering systems in four unconventional resource basins: the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which includes the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the liquids-rich Mesaverde formation as well as the emerging Mancos and Niobrara Shale formations.
Executives
J Heath Deneke director, officer: See remarks below. 700 LOUISIANA STREET, SUITE 2550, HOUSTON TX 77002
Jerry L Peters director, other: See Remarks 1811 AKSARBEN DRIVE, OMAHA NE 68106
James David Johnston officer: See remarks below. 910 LOUISIANA STREET, SUITE 4200, HOUSTON TX 77002
Rommel M. Oates director, other: See Remarks. 910 LOUISIANA STREET, SUITE 4200, HOUSTON TX 77002
William J. Mault officer: See remarks below. 910 LOUISIANA STREET, SUITE 4200, HOUSTON TX 77002
Matthew B. Sicinski officer: See remarks below. 910 LOUISIANA STREET, SUITE 4200, HOUSTON TX 77002
James J Cleary director, other: See Remarks. 12 E. 49TH STREET, 39TH FLOOR, NEW YORK NY 10017
Robert Joseph Mcnally director, other: See Remarks. 625 LIBERTY AVENUE, SUITE 1700, C/O EQT CORPORATION, PITTSBURGH PA 15222
Marguerite Woung-chapman director, other: See Remarks. 1001 LOUISIANA, HOUSTON TX 77002
Christopher M Leininger director, other: See Remarks. 11943 EL CAMINO REAL, SUITE 200, SAN DIEGO CA 92130
Francesco Ciabatti director, other: See Remarks. 51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
James Lee Jacobe director, other: See Remarks. 1790 HUGHES LANDING BLVD., SUITE 500, THE WOODLANDS TX 77380
Energy Capital Partners Ii (summit Co-invest), Lp director, 10 percent owner C/O ENERGY CAPITAL PARTNERS II, 51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
Energy Capital Partners Ii-c (summit Ip), Lp director, 10 percent owner 51 JOHN F. KENNEDY PARKWAY, SUITE 1250, SHORT HILLS NJ 07078
Energy Capital Partners Ii-b Ip, Lp director, 10 percent owner 51 JOHN F. KENNEDY PARKWAY, SUITE 1250, SHORT HILLS NJ 07078