Assessing the Upcoming Dividend and Historical Performance of Euronav NV
Euronav NV (NYSE:EURN) recently announced a dividend of $0.57 per share, payable on 2023-12-20, with the ex-dividend date set for 2023-12-12. 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 Euronav NV's dividend performance and assess its sustainability.
What Does Euronav NV Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Euronav NV owns and operates a fleet of vessels for international maritime shipping and storage of crude oil and petroleum products. The company organises itself into two segments: tankers and floating storage and offloading activities, or FSO. The tankers segment, which generates the majority of revenue, operates crude oil tankers on international markets. The FSO segment conducts floating production, floating storage, and offloading operations for crude oil and petroleum products.
A Glimpse at Euronav NV's Dividend History
Euronav NV has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Euronav NV's Dividend Yield and Growth
As of today, Euronav NV currently has a 12-month trailing dividend yield of 14.49% and a 12-month forward dividend yield of 17.67%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Euronav NV's dividend yield and five-year growth rate, the 5-year yield on cost of Euronav NV stock as of today is approximately 14.49%.
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 2023-09-30, Euronav NV's dividend payout ratio is 0.76, which may suggest that the company's dividend may not be sustainable.
Euronav NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Euronav NV's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 6 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. Euronav 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 Euronav NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Euronav NV's revenue has increased by approximately 1.60% per year on average, a rate that underperforms approximately 68.71% 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, Euronav NV's earnings increased by approximately 10.80% per year on average, a rate that underperforms approximately 61.58% of global competitors.
Concluding Insights on Euronav NV's Dividend Prowess
In conclusion, while Euronav NV's robust dividend yield and consistent payment history are attractive, the sustainability of its dividends requires careful examination. The current payout ratio and profitability rank provide a mixed signal on the long-term viability of its dividend payments. Coupled with the company's growth metrics, investors should weigh these factors when considering Euronav NV as a potential dividend investment. As the maritime shipping industry evolves, will Euronav NV adapt and maintain its dividend attractiveness? Value investors may find this an essential question to ponder. For those seeking high-dividend yield opportunities, GuruFocus Premium offers a comprehensive High Dividend Yield Screener to discover similar stocks.
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.