Gaztransport et technigaz SA's Dividend Analysis
Assessing the Sustainability of Gaztransport et technigaz SA's Upcoming Dividend
Gaztransport et technigaz SA (GZPZY) recently announced a dividend of $0.4 per share, payable on 2023-12-29, with the ex-dividend date set for 2023-12-08. 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 Gaztransport et technigaz SA's dividend performance and assess its sustainability.
What Does Gaztransport et technigaz SA Do?
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Gaztransport et technigaz SA is a France-based company that provides services relating to the building of liquefied natural gas storage and transport facilities. The company owns its proprietary testing laboratories and conducts research through its partnerships with research institutions, engineering companies, laboratories and universities. The company's clients mainly comprise liquefied natural gas carriers. The company generated almost all its revenue from South Korea and China.
A Glimpse at Gaztransport et technigaz SA's Dividend History
Gaztransport et technigaz SA has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Gaztransport et technigaz SA's Dividend Yield and Growth
As of today, Gaztransport et technigaz SA currently has a 12-month trailing dividend yield of 2.72% and a 12-month forward dividend yield of 3.02%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Gaztransport et technigaz SA's annual dividend growth rate was 0.10%. Extended to a five-year horizon, this rate increased to 5.40% per year. Based on Gaztransport et technigaz SA's dividend yield and five-year growth rate, the 5-year yield on cost of Gaztransport et technigaz SA stock as of today is approximately 3.54%.
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, Gaztransport et technigaz SA's dividend payout ratio is 0.77. And this may suggest that the company's dividend may not be sustainable.
Gaztransport et technigaz SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Gaztransport et technigaz SA's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Gaztransport et technigaz SA's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Gaztransport et technigaz SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Gaztransport et technigaz SA's revenue has increased by approximately 2.30% per year on average, a rate that underperforms than approximately 66.71% 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, Gaztransport et technigaz SA's earnings increased by approximately -3.50% per year on average, a rate that underperforms than approximately 74.15% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 0.60%, which underperforms than approximately 72.08% of global competitors.
Next Steps
In conclusion, while Gaztransport et technigaz SA's upcoming dividend and historical payouts demonstrate a commitment to returning value to shareholders, the sustainability of these dividends should be carefully monitored. The payout ratio, while currently high, may raise concerns about long-term sustainability. However, the company's strong profitability and growth ranks provide a counterbalance, suggesting that Gaztransport et technigaz SA may have the capacity to maintain its dividend payments. Investors should weigh these factors alongside industry trends and the company's strategic initiatives when considering Gaztransport et technigaz SA as a potential investment for dividend income. Could Gaztransport et technigaz SA's strong profitability and growth metrics offset the concerns raised by its payout ratio? This is a question value investors should ponder.
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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.
