What is Lamb Weston Holdings Earnings Yield (Joel Greenblatt) %?
Lamb Weston Holdings's Enterprise Value for the quarter that ended in Feb. 2024 was $18,577 Mil.
Lamb Weston Holdings's EBIT for the trailing twelve months (TTM) ended in Feb. 2024 was $1,040 Mil. Lamb Weston Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2024 was 5.60%.
The historical rank and industry rank for Lamb Weston Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
LW'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.77 Med: 4.79 Max: 7.28
Current: 6.54
During the past 10 years, the highest Earnings Yield (Joel Greenblatt) of Lamb Weston Holdings was 7.28%. The lowest was 2.77%. And the median was 4.79%.
LW's Earnings Yield (Joel Greenblatt) % is ranked better than 59.58% of 1947
companies
in the Consumer Packaged Goods industry
Industry Median: 4.99
vs LW: 6.54
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) %. Lamb Weston Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Feb. 2024 was 10.34%. 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.
Lamb Weston Holdings Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Lamb Weston 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.
For the Packaged Foods subindustry, Lamb Weston 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.
Lamb Weston Holdings's Earnings Yield (Joel Greenblatt) % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Lamb Weston 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.
Lamb Weston Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in May. 2023 is calculated as
Lamb Weston Holdings's EBIT for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,040 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.
Lamb Weston Holdings Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Lamb Weston Holdings's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lamb Weston Holdings (Lamb Weston Holdings) Business Description
Lamb Weston is North America's largest and the world's second-largest producer of branded and private-label frozen potato products, both by volume and value. The company's portfolio is anchored by French fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Nearly 70% of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald's is Lamb Weston's single largest customer at 13% of fiscal 2023 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.
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