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What does EPS Gwth Streak mean?

For how many out of the last 5 consecutive years has the company grown EPS? This measures the consistency of the company's earnings growth.

What does ROE % 5y Avg mean?

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. This is the average ROE over the last five years.

Stockopedia explains ROE % 5y Avg...

Widely used by investors, the ROE ratio shows the return being generated for every pound of equity on the balance sheet. It should be thought of as the 'internal return' that the company generates, and should not be mistaken with the market returns that shareholders may attain.

It varies by industry but ROEs of 15% or over are usually considered desirable. High ROE numbers sustained over the long term may indicate a company has a 'sustainable competitive advantage'. Such companies tend to sell at higher valuation multiples.

The impact of leverage is one of the disadvantages of focusing on ROEs as it can skew ROE upwards - an alternative is to look at Return on Capital Employed.

What does ROCE % 5y Avg mean?

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to Return on Assets, but takes into account sources of financing. NOPAT is equal to EBIT * (1 - tax) -- the return on the capital employed should be measured in after tax terms. The main drawback of ROCE is that it measures return against the book value of assets so, as these are depreciated, the ROCE will increase even though cash flow is constant. This is not the case with ROIC.

Stockopedia explains ROCE % 5y Avg...

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to Return on Assets, but takes into account sources of financing. NOPAT is equal to EBIT * (1 - tax) -- the return on the capital employed should be measured in after tax terms. The main drawback of ROCE is that it measures return against the book value of assets so, as these are depreciated, the ROCE will increase even though cash flow is constant. This is not the case with ROIC.

What does FCF mean?

Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. Unlike earnings, it omits purely \paper only\"\"" expenses\""\""\"""""

Stockopedia explains FCF...

Free Cash Flow per share should be compared with Earnings per Share in order to understand whether a company is able to turn its earnings into cash or not! Ultimately every company needs to make cash to survive and without free cash flow a company will have to go begging to shareholders or resort to borrowing. The best companies are 'cash machines' - you should look for companies that make more free cashflow than earnings.

N.B. Cashflow can be very 'lumpy' as capital expenditures are not consistent from year to year. Also growing companies may have to invest heavily ahead of cashflow to keep up with demand.

What does Long Term Debt mean?

This is Total Long Term Debt - Last interim period, Reporting Currency

What does % 5y Price Chg mean?

This measures the absolute percentage performance of the share price over the past five years. It is calculated as (Current Price minus Old Price) divided by Old Price x 100.

Stockopedia explains % 5y Price Chg...

It is to be contrasted with Relative Strength where the percentage change is calculated and compared to the market or some other standard index.
Along with Dividends, the absolute price performance is the other key component to determining Total Shareholder Return.

What does NAV PS 5y CAGR % mean?

Book Value Per Share - or Net Asset Value Per Share - is a measure of shareholder's equity determined on a per-share basis. Book value per share is calculated by subtracting liabilities and the value of any outstanding preferred stock from assets and dividing the remainder by the number of outstanding shares of stock. Book value per share reflects accounting valuation and not necessarily market valuation. However, should the company go into liquidation, the book value per share is a proxy for the value remaining for common shareholders after all debtors are paid.

What does Earnings Yield % Last Yr mean?

As defined in the Little Book that Beats the Market, the earnings yield compares the profit generated with the market valuation of the company. It is defined as operating profit divided by enterprise value. In a case where the company has a negative Entreprise Value (i.e. it's trading for less than net cash), we use 1 as the Entreprise Value so that the Earnings Yield becomes the Operating Income.

Stockopedia explains Earnings Yield % Last Yr...

Enterprise value is used rather than market capitalization to reflect the competing claims of debt and equity holders on the business. This penalizes companies that carry a lot of debt and little cash, and rewards firms with a lot of cash - a useful distinction not reflected in the P/E ratio.

Operating earnings are used instead of net income to eliminate the distortions caused by recognized tax benefits or goodwill write-downs that have very little to do with the company's profitability.

What does Exp. Return (Hist Gwth) mean?

According to Mary Buffett's "Buffetology", this can be calculated as follows:

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Stockopedia explains Exp. Return (Hist Gwth)...

For more details on this approach, read our synopsis of Buffetology