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Best-in-class profitability In addition to this advantage from monetizing the by-product of its core collections business, Waste Management has historically held higher return on invested capital (ROIC) figures than its two most prominent peers. ROIC shows that it is the best in its industry at reinvesting in its business.
Solid Q1 results Enterprise once again turned in solid results when it reported its first-quarter results, as its total gross operating profit rose 7% to $2.5 Its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ), meanwhile, rose 6% to nearly $2.5 It generated distributable cash flow of $1.9
It has averaged a return on invested capital (ROIC) of about 12% over the past decade. Enterprisevalue takes into consideration a stock's net debt, while EBITDA removes non-cash expenses. On that basis, Enterprise is trading at just over a 9x multiple. The company currently plans to spend between $3.25
The company typically has gotten a 13% return on invested capital over the past several years. Inexpensive valuation Despite its high yield and growth opportunities, Enterprise is still trading at an inexpensive valuation of a 9.3 forward enterprisevalue (EV) -to- EBITDA multiple. It's also well below the 13.7
The company typically has gotten a 13% return on invested capital over the past several years. Inexpensive valuation Despite its high yield and growth opportunities, Enterprise is still trading at an inexpensive valuation of a 9.3 forward enterprisevalue (EV) -to- EBITDA multiple. It's also well below the 13.7
Generating positive free cash flow (FCF) every year since the turn of the century, the stock has delivered total returns of 3,600% over that time -- or seven times the S&P 500 index's return. Compared to its weighted average cost of capital (WACC) of 7%, the company consistently creates value for investors.
From 2014 to 2019, Paycom's annual revenue grew at a compound annual growth rate (CAGR) of 37% while its adjusted earnings before taxes, depreciation, and amortization ( EBITDA ) rose at a CAGR of 64%. At its peak, its enterprisevalue hit $31.9 Image source: Getty Images. Why did the bulls love Paycom?
A consistent performer The key to Enterprise's success over the years has been consistency, which has helped the pipeline company increase its distribution for 26 straight years through various ups and downs in the energy markets. For Q2, the Enterprise saw its total gross-operating margin increase nearly 11% to $2.4
In its third quarter, Enterprise's total gross operating profit increased 5% to $2.45 Its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) also rose 5% to nearly $2.44 Enterprise currently has $6.9 It noted that it has produced about a 12% return on invested capital over the past decade.
The fourth quarter comes in ahead of plan Earlier this year, Carnival CEO Josh Weinstein unveiled a new three-year plan called SEA Change, which stands for Sustainability, EBITDA per available lower berth day (ALBD), and Adjusted return on invested capital (ROIC). Based on the company's forward guidance, Carnival shares trade at 20.6
Paycom's adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) margin rose from 39.3% Based on those estimates and its enterprisevalue of $2.5 in 2020 to 42.2% in 2022, and it expects that figure to expand to a midpoint of 42.5%
It's a lot like return on invested capital. First of all, we may have to make a differentiation between pre-tax and after tax ROUNTA. Just assume it's all after tax. But I'll say this. There actually is no single definition for ROIC. Although people talk about ROIC all the time, like, it's crystal clear.
And following the Fitch upgrade in July, our balance sheet now has two investment-grade ratings and our dividend yield is in line with the S&P 500. Across much of the industry, there has been an accelerated pace of change and we are encouraged by the actions the industry is taking to improve profitability and returns.
I know there's not just top-line growth, do I have to guess the effective tax rate for the companies I'm looking at five years from now? But then, so whether that's price or whether it's enterprisevalue, we can, there's applications for each. Here's our target return on invested capital.
Ricky Mulvey: Well, one thing that Mauboussin has said on some podcasts is that investors have to earn the right to use yardsticks like a price to earnings multiple and enterprisevalue, to EBITDA multiple earnings before interest, taxes, depreciation, and amortization. Compare the price to its return on invested capital.
During the quarter, we sold a portion of our interest in ABG for gross proceeds of $300 million in cash and reported pre-tax and after-tax gains of $157 million and $118 million, respectively. And they're open to buying -- their return on investment in stores is a proven financial model. They're doing that.
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