What is Howmet Aerospace Earnings Yield (Joel Greenblatt) %?
Howmet Aerospace's Enterprise Value for the quarter that ended in Mar. 2024 was $31,160 Mil.
Howmet Aerospace's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 was $1,268 Mil. Howmet Aerospace's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2024 was 4.07%.
The historical rank and industry rank for Howmet Aerospace's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
HWM'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.73 Med: 4.26 Max: 13.97
Current: 3.42
During the past 10 years, the highest Earnings Yield (Joel Greenblatt) of Howmet Aerospace was 13.97%. The lowest was 1.73%. And the median was 4.26%.
HWM's Earnings Yield (Joel Greenblatt) % is ranked better than 60.51% of 314
companies
in the Aerospace & Defense industry
Industry Median: 2.445
vs HWM: 3.42
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) %. Howmet Aerospace's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2024 was 8.89%. 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.
Howmet Aerospace Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Howmet Aerospace'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 Howmet Aerospace's Earnings Yield (Joel Greenblatt) %
For the Aerospace & Defense subindustry, Howmet Aerospace'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.
Howmet Aerospace's Earnings Yield (Joel Greenblatt) % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace'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.
Howmet Aerospaces Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as
Howmet Aerospace's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,268 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.
Howmet Aerospace Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Howmet Aerospace's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Howmet Aerospace (Howmet Aerospace) Business Description
Howmet Aerospace Inc produces products that are majorly used in aerospace, commercial transportation, and industrial and other markets. The company seeks to provide its customers with innovative solutions through offering differentiated products such as airfoils with advanced cooling and coatings for extreme temperature applications, specially designed fasteners for lightweight composite airframe construction, reduced assembly costs, and lightning strike protection and lightweight aluminum commercial wheels. It has four reportable segments namely, Engine Products, Fastening Systems, Engineered Structures and Forged Wheels.
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