JDE Peets NV's Dividend Analysis
Insights into JDE Peets NV's Upcoming Dividend Payment and Financial Health
JDE Peets NV (JDEPF) recently announced a dividend of $0.35 per share, payable on 2024-01-26, with the ex-dividend date set for 2024-01-22. 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 JDE Peets NV's dividend performance and assess its sustainability.
What Does JDE Peets NV Do?
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Formed by a merger of D.E. Master Blenders and Mondelez International's coffee assets in 2015 and augmented by the acquisition of Peet's Coffee in 2019, JDE Peet's is the world's largest pure-play coffee and tea group by revenue, with operations in more than 100 developed and emerging countries. Its portfolio of over 50 brands includes global labels such as Peet's, Jacobs, L'Or, Senseo, Tassimo, and Pickwick; regional brands like Douwe Egberts, Stumptown, Kenco, Moccona, Intelligentsia, OldTown, Super, and Ofcay; and local marques such as Maison du Cafe in France, Harris in Australia, and Mighty Leaf Tea in the U.S. Offerings reach across the CPG, out-of-home, retail, and online channels. JDE Peet's was first listed in 2020, with Acorn Holdings and Mondelez owning the majority of shares.
A Glimpse at JDE Peets NV's Dividend History
JDE Peets NV has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down JDE Peets NV's Dividend Yield and Growth
As of today, JDE Peets NV currently has a 12-month trailing dividend yield of 3.08% and a 12-month forward dividend yield of 2.97%. This suggests an expectation of decreased dividend payments over the next 12 months. JDE Peets NV's dividend yield of 3.08% is near a 10-year high and outperforms 63.48% of global competitors in the Consumer Packaged Goods industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on JDE Peets NV's dividend yield and five-year growth rate, the 5-year yield on cost of JDE Peets NV stock as of today is approximately 3.08%.
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, JDE Peets NV's dividend payout ratio is 0.74, which may suggest that the company's dividend may not be sustainable.
JDE Peets NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks JDE Peets NV's profitability 6 out of 10 as of 2023-06-30, 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. JDE Peets 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 JDE Peets NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. JDE Peets NV's revenue has increased by approximately 5.40% per year on average, a rate that underperforms approximately 55.23% 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, JDE Peets NV's earnings increased by approximately 8.00% per year on average, a rate that underperforms approximately 49.47% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 6.10%, which underperforms approximately 48.41% of global competitors.
Next Steps
In conclusion, while JDE Peets NV's dividend payments are currently attractive, investors should carefully consider the payout ratio, profitability, and growth metrics before making investment decisions. The company's fair growth outlook and profitability suggest potential for future dividend sustainability, but the underperformance in revenue and earnings growth compared to peers indicates areas for investor scrutiny. As JDE Peets NV navigates the competitive Consumer Packaged Goods landscape, will its strategy ensure continued dividend payments and shareholder value? This is a question value investors may ponder as they assess the company's financial health and future prospects.
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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.
