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DCNSF (Dai-ichi Life Holdings) Earnings Yield % : 10.51% (As of Oct. 09, 2024)


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What is Dai-ichi Life Holdings Earnings Yield %?

The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

As of today (2024-10-09), the stock price of Dai-ichi Life Holdings is $25.48. Dai-ichi Life Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $2.68. Therefore, Dai-ichi Life Holdings's earnings yield of today is 10.51%.

The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Dai-ichi Life Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2024 was 0.00%. 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.

Dai-ichi Life Holdings Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

Dai-ichi Life Holdings's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=2.678/25.48
=10.51 %

Dai-ichi Life Holdings's Earnings per Share (Diluted) 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 $2.678 Mil.

* 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.

It can also be calculated from the numbers for the whole company:

Earnings Yield=Net Income /Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.

Dai-ichi Life Holdings  (OTCPK:DCNSF) Earnings Yield % Explanation

If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.

Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.

Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.

Dai-ichi Life Holdings Earnings Yield % Related Terms

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Dai-ichi Life Holdings Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Dai-ichi Life Holdings Inc (OTCPK:DCNSF) » Definitions » Earnings Yield %
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Traded in Other Exchanges
DLICY:USA 8750:Japan QHH:Germany
Address
13-1, Yurakucho 1-chome, Chiyoda-ku, Tokyo, JPN, 100-8411
Website
https://www.dai-ichi-life-hd.com
Dai-Ichi Life is Japan's second-largest life insurance company excluding recently privatized Japan Post Insurance, with a market share of around 11% of annualized net premiums. Unlike its largest domestic competitors Nippon Life, Meiji Yasuda, and Sumitomo Life, which remain mutually owned by their policyholders, Dai-Ichi Life demutualized and listed on the Tokyo Stock Exchange in 2010. Its main domestic operating company accounts for around 60% of profits, its Frontier bancassurance subsidiary selling mainly savings products accounts for around 10%, Alabama-based Protective Life accounts for around 15%, TAL in Australia accounts for 7%, and Dai-Ichi Life Vietnam around 5%. Dai-Ichi also holds a 30% economic interest in Mizuho's Asset Management One.