What is Element Solutions Earnings Yield (Joel Greenblatt) %?
Element Solutions's Enterprise Value for the quarter that ended in Dec. 2023 was $7,265 Mil.
Element Solutions's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $178 Mil. Element Solutions's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 2.46%.
The historical rank and industry rank for Element Solutions's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
ESI'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -0.96 Med: 2.76 Max: 7.27
Current: 2.39
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Element Solutions was 7.27%. The lowest was -0.96%. And the median was 2.76%.
ESI's Earnings Yield (Joel Greenblatt) % is ranked worse than 64.1% of 1574
companies
in the Chemicals industry
Industry Median: 4.295
vs ESI: 2.39
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) %. Element Solutions's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 10.93%. 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.
Element Solutions Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Element Solutions'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.
* Premium members only.
Element Solutions Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of Element Solutions's Earnings Yield (Joel Greenblatt) %
For the Specialty Chemicals subindustry, Element Solutions'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.
Element Solutions's Earnings Yield (Joel Greenblatt) % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Element Solutions's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Element Solutions's Earnings Yield (Joel Greenblatt) % falls into.
Element Solutions Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Element Solutionss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as
Element Solutions's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $178 Mil.
Element Solutions (NYSE:ESI) Earnings Yield (Joel Greenblatt) % Explanation
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.
Element Solutions Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Element Solutions's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Element Solutions (Element Solutions) Business Description
Element Solutions Inc is a specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. The company has two segments which are Electronics and Industrial & Specialty. The Industrial & Specialty segment researches, formulates and sells specialty chemicals and process technologies that enhance surfaces or improve industrial processes in diverse industrial sectors from automotive trim to transcontinental infrastructure and from high-speed printing to high-design faucets. The electronics segment researches, formulates and sells specialty chemicals and material process technologies for all types of electronics hardware, from complex printed circuit board designs to semiconductor packaging.
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