Reynolds American (Reynolds American) Earnings Yield % : 3.53% (As of May. 05, 2024)

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What is Reynolds American Earnings Yield %?

The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

As of today (2024-05-05), the stock price of Reynolds American is $65.40. Reynolds American's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2017 was $2.31. Therefore, Reynolds American's earnings yield of today is 3.53%.

The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Reynolds American's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2017 was 32.33%. 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.

Reynolds American Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

Reynolds American's Earnings Yield for today is calculated as

Earnings Yield	=	Earnings per Share (Diluted) (TTM)	/	Share Price
	=	2.310	/	65.40
	=	3.53 %

Reynolds American's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.310 Mil.

* 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.

It can also be calculated from the numbers for the whole company:

Earnings Yield

Net Income

Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.

Reynolds American (NYSE:RAI) Earnings Yield % Explanation

If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.

Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.

Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.

Reynolds American Earnings Yield % Related Terms

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Reynolds American (Reynolds American) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Reynolds American Inc (NYSE:RAI) » Definitions » Earnings Yield %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.reynoldsamerican.com

Reynolds American controls roughly one third of the U.S. cigarette market and is the second-largest domestic cigarette manufacturer behind Altria. Its brands include Camel, Pall Mall, and Newport. Reynolds also owns the Grizzly and Kodiak smokeless tobacco brands. Another subsidiary, Santa Fe Natural Tobacco, manufactures superpremium Natural American Spirit cigarettes. In 2013, Reynolds entered the electronic cigarette market with its Vuse brand, which captured a significant share of this small but growing market.

Executives

John J Zillmer	director	ARAMARK CORP, 1101 MARKET ST, PHILADELPHIA PA 19107
Debra Ann Crew	officer: President and CEO	STANLEY BLACK & DECKER, INC., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Ronald S Rolfe	director	825 8TH AVENUE, 38TH FLOOR, NEW YORK NY 10019
Nowell Lionel L Iii	director	401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Holly K Koeppel	director	401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Susan M. Cameron	director	C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353
Murray S Kessler	director	714 GREEN VALLEY ROAD, GREENSBORO NC 27408
Nana Mensah	director	1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Thomas C Wajnert	director	401 NORTH MAIN STREET, WINSTON SALEM NC 27102
Richard E Thornburgh	director	401 N. MAIN STREET, WINSTON-SALEM NC 27101
Nicholas V Scheele	director	FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
Betsy S Atkins	director
Joseph P Viviano	director	4351 GULF SHORE BLVD. N, 17N LERIVAGE, NAPLES FL 34103
Monteiro De Castro Antonio	director	BRITISH AMERICAN TOBACCO - GLOBE HOUSE, 4 TEMPLE PLACE, LONDON X0 WC2R2PG
Chain John T Jr	director	401 N. MAIN ST., C/O RJ REYNOLDS TOBACCO HOLDINGS, WINSTON SALEM NC 27102