What is Rockwood Holdings Earnings Yield (Joel Greenblatt) %?
Rockwood Holdings's Enterprise Value for the quarter that ended in Sep. 2014 was €5,011 Mil.
Rockwood Holdings's EBIT for the trailing twelve months (TTM) ended in Sep. 2014 was €148 Mil. Rockwood Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 3.18%.
The historical rank and industry rank for Rockwood Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
FRA:R6H'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.6 Med: 6.9 Max: 12
Current: 3.1
During the past 12 years, the highest Earnings Yield (Joel Greenblatt) of Rockwood Holdings was 12.00%. The lowest was 2.60%. And the median was 6.90%.
FRA:R6H's Earnings Yield (Joel Greenblatt) % is not ranked
in the Chemicals industry.
Industry Median: 4.01
vs FRA:R6H: 3.10
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) %. Rockwood Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2014 was -12.27%. 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.
Rockwood Holdings Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Rockwood Holdings'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.
Competitive Comparison of Rockwood Holdings's Earnings Yield (Joel Greenblatt) %
For the Specialty Chemicals subindustry, Rockwood Holdings'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.
Rockwood Holdings's Earnings Yield (Joel Greenblatt) % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Rockwood Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Rockwood Holdings's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Rockwood Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2013 is calculated as
Rockwood Holdings's EBIT for the trailing twelve months (TTM) ended in Sep. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €148 Mil.
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.
Rockwood Holdings Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Rockwood Holdings's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rockwood Holdings Inc was incorporated in Delaware in September 2000. It is a developer, manufacturer and marketer of value-added specialty chemicals and materials used for industrial and commercial purposes. The Company operates through two business segments: Lithium and Surface Treatment. The Lithium segment operates under the Rockwood Lithium brand name and develops lithium chemicals for industries and end markets. It develops and manufactures basic lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties and reagents, including butyllithium and lithium aluminum hydride. It operates lithium business along the following five business divisions reflecting its core end-markets: Lithium Salts; Special Salts; Butyllithium/Lithium Metal; Battery Products and Lithium Specialties. Lithium segment obtains lithium brine which it uses to produce lithium products through evaporation in the Salar de Atacama, Chile and Silver Peak, Nevada. Lithium's customers include Bayer CropScience (a division of Bayer AG), Syngenta AG, Umicore S.A., Samsung SDI Co. Ltd. and Royal DSM N.V. Surface Treatment segment operates under the Chemetall brand name and develops and manufactures metal surface treatment products and services for industries and end market. Surface Treatment's products are used for a variety of applications and serve the automotive, aerospace and general industrial markets, including steel and metal-working industries. The customers include ArcelorMittal, Daimler AG, European Aeronautic Defence and Space Company (EADS) N.V., Ford, Renault-Nissan and Volkswagen AG. The competitors in this segment includes: Dow Corning Corporation, Catalise Industria e Comercio de Metals Ltda and Nachmann S.r.I. The Company's operations are subject to regulation by the FDA with respect to certain products produced, marketed and sold by its Lithium segment, which includes pharmaceutical intermediates.
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