雅虎香港財經 Sligro Food Group NV: A Comprehensive Analysis of Its Dividend Performance
Assessing the Sustainability of Sligro Food Group NV's Dividend Payments
Sligro Food Group NV (SIGRF) recently announced a dividend of $0.3 per share, payable on 2023-10-02, with the ex-dividend date set for 2023-09-20. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Sligro Food Group NV's dividend performance and assess its sustainability.
What Does Sligro Food Group NV Do?
Warning! GuruFocus has detected 1 Warning Sign with THQ. Click here to check it out.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Sligro Food Group NV is a Netherlands-based company that is principally engaged in distributing food and beverages. The company provides a combination of food and food-related non-food products and services. It owns a food retail business, which operates through EMTE supermarkets, and a food service business, which operates through a network of cash-and-carry and delivery service outlets that service institutional customers, the hospitality industry, catering companies, and other large-volume users in the Netherlands and Belgium. The company also owns production facilities for some specialist products. It generates revenue from the food service business and geographically in the Netherlands.
A Glimpse at Sligro Food Group NV's Dividend History
Sligro Food Group NV has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Sligro Food Group NV's Dividend Yield and Growth
As of today, Sligro Food Group NV currently has a 12-month trailing dividend yield of 2.97% and a 12-month forward dividend yield of 3.54%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Sligro Food Group NV's annual dividend growth rate was -40.20%. Based on Sligro Food Group NV's dividend yield and five-year growth rate, the 5-year yield on cost of Sligro Food Group NV stock as of today is approximately 2.97%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Sligro Food Group NV's dividend payout ratio is 1.57. This may suggest that the company's dividend may not be sustainable. Sligro Food Group NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sligro Food Group NV's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Sligro Food Group NV's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Sligro Food Group NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sligro Food Group NV's revenue has increased by approximately 0.60% per year on average, a rate that underperforms than approximately 68.97% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Sligro Food Group NV's earnings increased by approximately 3.70% per year on average, a rate that underperforms than approximately 69.33% of global competitors.
Conclusion
Sligro Food Group NV's dividend payments, growth rate, payout ratio, profitability, and growth metrics present a mixed picture. While the company has maintained a consistent dividend payment record, its dividend growth rate and payout ratio raise concerns about the sustainability of future dividends. Additionally, the company's fair profitability and growth outlook suggest that it has the potential to sustain its dividends in the long run. However, its underperformance in revenue and EPS growth compared to global competitors indicates areas for improvement. Therefore, investors should closely monitor these factors while considering Sligro Food Group NV for their portfolio.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
