Fluidra SA's Dividend Analysis
Insight into Fluidra SA's Upcoming Dividend and Financial Health
Fluidra SA(FLUIF) recently announced a dividend of $0.35 per share, payable on 2023-12-05, with the ex-dividend date set for 2023-12-01. 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 Fluidra SA's dividend performance and assess its sustainability.
What Does Fluidra SA Do?
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Fluidra SA is engaged in the business of pool and wellness and Irrigation, Industrial and Others. The company is responsible for manufacturing and distributing all the components required for the construction, renovation, improvement and maintenance of residential and commercial pools. Also, in some southern European countries, the company supplements its core pool and wellness business with irrigation and landscaping accessories for gardens that are often adjacent to pools. The Business Divisions of the company are EMEA, North America and APAC.
A Glimpse at Fluidra SA's Dividend History
Fluidra SA has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Fluidra SA's Dividend Yield and Growth
As of today, Fluidra SA currently has a 12-month trailing dividend yield of 4.32% and a 12-month forward dividend yield of 4.14%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Fluidra SA's dividend yield and five-year growth rate, the 5-year yield on cost of Fluidra SA stock as of today is approximately 4.32%.
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, Fluidra SA's dividend payout ratio is 1.40, which may suggest that the company's dividend may not be sustainable. Fluidra SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Fluidra SA's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 8 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. Fluidra SA's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Fluidra SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Fluidra SA's revenue has increased by approximately 21.60% per year on average, a rate that outperforms approximately 82.93% 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, Fluidra SA's earnings increased by approximately 114.60% per year on average, a rate that outperforms approximately 96.58% of global competitors.
Conclusion: Assessing Fluidra SA's Dividend Outlook
In conclusion, while Fluidra SA's dividend payout ratio may raise some concerns about the sustainability of its dividends, the company's strong profitability rank and impressive growth metrics present a more reassuring picture. The history of consistent dividend payments, along with a robust increase in revenue and earnings, suggests that Fluidra SA is well-positioned to continue rewarding shareholders. As value investors consider Fluidra SA for its dividend prospects, it is essential to balance the current payout ratio with the company's overall financial health and growth potential. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar investment opportunities.
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.
