B&M European Value Retail SA's Dividend Analysis
Unpacking the Dividend Profile of B&M European Value Retail SA
B&M European Value Retail SA (BMRPF) recently announced a dividend of $0.2 per share, payable on 2024-02-09, with the ex-dividend date set for 2024-01-18. 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 look into B&M European Value Retail SA's dividend performance and assess its sustainability.
What Does B&M European Value Retail SA Do?
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B&M European Value Retail SA is principally engaged in operating discount retail stores. The company provides a broad range of merchandise, including food, alcohol, housewares, home textiles, small electrical goods, DIY products, garden-related products, grocery, fast-moving consumer goods, and more. Among its stores are B&M stores in the United Kingdom and France, and UK Heron. The B&M stores in the United Kingdom account for the majority of the company's total revenue.
A Glimpse at B&M European Value Retail SA's Dividend History
B&M European Value Retail SA has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down B&M European Value Retail SA's Dividend Yield and Growth
As of today, B&M European Value Retail SA currently has a 12-month trailing dividend yield of 2.70% and a 12-month forward dividend yield of 2.70%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, B&M European Value Retail SA's annual dividend growth rate was 29.50%. Extended to a five-year horizon, this rate decreased to 24.60% per year. Based on B&M European Value Retail SA's dividend yield and five-year growth rate, the 5-year yield on cost of B&M European Value Retail SA stock as of today is approximately 8.11%.
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 2023-03-31, B&M European Value Retail SA's dividend payout ratio is 0.48.
B&M European Value Retail SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks B&M European Value Retail SA's profitability 8 out of 10 as of 2023-03-31, suggesting good profitability prospects. 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. B&M European Value Retail SA's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and B&M European Value Retail SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. B&M European Value Retail SA's revenue has increased by approximately 9.20% per year on average, a rate that outperforms approximately 66.55% 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, B&M European Value Retail SA's earnings increased by approximately 24.60% per year on average, a rate that outperforms approximately 68.16% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 21.00%, which outperforms approximately 76.3% of global competitors, indicates strong earnings before interest, taxes, depreciation, and amortization.
Engaging Conclusion: Weighing B&M European Value Retail SA's Dividend Prospects
In summary, B&M European Value Retail SA's upcoming dividend payment, consistent history, and healthy growth rates paint a promising picture for dividend-seeking investors. With a prudent payout ratio and robust profitability, the company demonstrates a capacity to maintain and potentially increase dividend distributions. Moreover, strong growth metrics signal a sustainable financial trajectory, essential for long-term dividend reliability. As value investors consider their next moves, the question remains: will B&M European Value Retail SA continue to be a valuable addition to dividend portfolios in the years to come?
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
