Sentences with phrase «earnings power»

"Earnings power" refers to a company's ability to generate consistent and sustainable profits over time. It signifies the company's capacity to generate income from its operations and indicates its financial strength and potential for long-term success. Full definition
I've got too much exposure there as it stands, and the prices I bought in at are pretty attractive relative to the long - term earnings power of many of those companies.
However, we use long - term earnings power to estimate business value, and we believe FedEx offers considerable long - term earnings potential.
You are right that liquidation value should be added to earnings power value to get a fuller valuation.
The future earnings power of the market is severely impaired or destroyed and this fact is not reflected in prices.
Therefore, value investors prefer to estimate the intrinsic value of a company by looking first at assets and then at current earnings power.
It combines many of the unique benefits of life insurance with with earnings power of an investment account.
This list is basically the top rated stocks from my list that I generate by ranking for earnings power yield, dividend yield and long term growth.
I use screens to identify industries and companies that show consistent earnings power over multiple economic cycles.
This is a way to combine the tax benefits of life insurance with the potential earnings power of an investment account.
And, the company has begun to demonstrate steady, sustainable growth, and consistent earnings power with revenue rising by about 10 % per year for the past three years.
This essentially tells you how much yield you would be getting from the company's earnings power as an investor.
These three items, when taken together, can serve as the basis for understanding a company's earnings power from both a single customer and aggregate market perspective.
He concentrates on high quality businesses with demonstrated earnings power, sound balance sheets and good prospects for profitable growth.
This is hardly the sort of earnings power which should command any premium over book value at all.
There is a lot of potential earnings power there, and it trades for little above book value.
However, when you measure earnings power, the same companies generated significant business growth.
To be clear, many average companies with significantly lesser earnings power are trading at earnings multiples approaching 2 to 3 times greater than many above - average companies are trading at.
If the DNA meter says you're a has - been, then all the traditional measures of growth and earnings power lose their potency.
In fact, based solely on current share prices and the market's current earnings power, stocks should be very rewarding for long - term investors.
So based on what you get for your money in terms of long - term earnings power, dividend yield, and book value, the market is trading at 1986 prices.
We use screens to identify industries and companies that show consistent earnings power over multiple economic cycles.
Though the distribution of the income by segment was quite different in the two quarters I take this as some kind of indication as to the potential earnings power on the current asset base.
Need to come up with earnings power, which takes me to my next point.
Treasury once again easily surpassed profit forecasts, posting a 25 per cent increase in earnings powered by strong growth in Asian sales.
We started buying the stock in 2014 at a time when if you looked at long - term average revenues and profitability, you could make a very strong case that the company had normalized earnings power of at least $ 4 per share, at a time when the stock was in the low - to - mid - $ 40s.
Plus, if record profit margins of the last few years prove unsustainable, then recent earnings figures may be overstating the true earnings power for the index.
Because it owns extensive insurance operations that experience fluctuating profits, it is not as easy to determine Berkshire's normal earnings power as it would be, for say, Kraft's food packaging divisions which have pretty predictable demand for macaroni and cheese, Oscar Meyer hot dogs, and Maxwell House coffee, but still — $ 12 billion is a good estimate of what «normal» profits look like each year for Berkshire shareholders.
Even if the Eurozone and China blew up at the same time and threw the world into another depression, the long - run underlying earnings power of the rich world's corporate sector will very likely not be permanently devastated.
The overall earnings power of the business isn't fully recognized and a bunch of temporary items like economic weakness in Europe obscure the value of the individual businesses (Chrysler, Maserati etc..)
He doesn't foresee a large jump in capex, and says earnings power of $ 12 - $ 14 per share over the next year is still the case.
This will save you $ 30 a year on your annual fee while still offering you the same signing bonus and the same points per dollar earnings power that you'd get with the Premier card.
What sometimes occurs is a need to reinvest during a time of weak pricing power, and this results in balance sheet deterioration and reduced earnings power.
Based on the above 16.5 billion of after tax earnings power, what is Berkshire's intrinsic value in your opinion?
The answer is that the 3 year earnings power of PB grew by an annualised rate of 15.2 % per year in that 7 year period.
«Our top pick among Japanese banks is Mitsubishi UFJ Financial Group (MUFG), which is steadily enhancing its consolidated earnings power and is likely to continue to achieve profit growth.»
Morgan Stanley could still not afford to swallow all of Smith Barney in one bite, and Citigroup didn't want to immediately give up all the much - needed earnings power the unit possessed.
Dimon added that the bank's «fortress» balance sheet and earnings power allowed for a $ 1.20 per share annual dividend along with the share buyback program.
Jonathan, whose earnings power is that of a «Playmaker,» needs his portfolio to support his lifestyle over a retirement that could last more than 50 years, given the Playmakers» generally shorter career and lower earnings potential compared with their Blue Chip teammates.
Five valuation model are available, along with Piotroski, Dupont, Altman Z - score and earnings power analysis.
(Please ignore the treatment of goodwill, advertising, R&D, you get the idea though...) To soften the blow on the income statement, changes in the value of many balance sheet items don't get run through net income, but through accumulated other comprehensive income, so that income can reflect sustainable earnings power, in theory.
Additionally, a card like the Sapphire Preferred can earn you the same rewards rates when you spend on dining at restaurants, increasing your rewards earnings power.
Our aim is to produce attractive risk - adjusted long - term returns investing in understandable businesses with mispriced earnings power.
You could also do reproduction cost analysis to determine what kind of capital it would require for a competitor or entrant to acquire a similar asset base and achieve the same earnings power (read Value Investing: From Graham to Buffett and Beyond and The Rational Investor).
Generally speaking, we will sell a stock for one of four reasons: (1) the safety of the dividend payment has come into question due to unexpected fundamental weakness; (2) the company's long term earnings power appears to have become impaired as a result of new competition, secular changes, etc; (3) the stock's valuation reaches seemingly excessive levels; or (4) we have a new stock idea with a more attractive valuation and fundamental outlook.
They pointed to the aggregate earnings power of the S&P 500 over the past decade, and the fact that it's compounded at less than two per cent on an annual basis.
To normalize the cyclicality out and get a handle on the gross earnings power of the S&P 500, Yale's Robert Shiller has popularized PE10, which is the ratio of price to the average earnings over the previous ten years.

Phrases with «earnings power»

a b c d e f g h i j k l m n o p q r s t u v w x y z