Mapfre SA's Dividend Analysis
Assessing the Upcoming Dividend Payout and Financial Health of Mapfre SA
Mapfre SA (MPFRF) recently announced a dividend of $0.06 per share, payable on 2023-11-30, with the ex-dividend date set for 2023-11-28. 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 Mapfre SA's dividend performance and assess its sustainability.
What Does Mapfre SA Do?
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Mapfre SA is engaged in insurance activity in its various lines of business, including both life and non-life insurance, finance, securities investment, and services. It operates through several business units such as Iberia, Brazil, Latam North, Latam South, North America, and Eurasia. Additionally, Mapfre SA offers assistance, global risks, and reinsurance services worldwide, with key revenue stemming from the Iberian market. The company also provides health and other non-life insurance policies.
A Glimpse at Mapfre SA's Dividend History
Mapfre SA has maintained a consistent dividend payment record since 2005, currently distributing dividends on a bi-annual basis. Below is a chart showing the annual Dividends Per Share for tracking historical trends.
Breaking Down Mapfre SA's Dividend Yield and Growth
As of today, Mapfre SA currently has a 12-month trailing dividend yield of 7.08% and a 12-month forward dividend yield of 7.24%, suggesting an expectation of increased dividend payments over the next 12 months. Over a five-year horizon, this rate decreased to -0.80% per year, while the past decade's annual dividends per share growth rate stands at 1.50%. Based on Mapfre SA's dividend yield and five-year growth rate, the 5-year yield on cost of Mapfre SA stock as of today is approximately 6.80%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one must look at the company's payout ratio. Mapfre SA's dividend payout ratio is 0.69 as of 2023-06-30. A lower ratio suggests a greater capacity for the company to fund future growth and navigate downturns. Mapfre SA's profitability rank is 4 out of 10 as of the same date, indicating potential concerns about the sustainability of the dividend, despite the company reporting positive net income annually over the past decade.
Growth Metrics: The Future Outlook
Mapfre SA's growth rank of 4 out of 10 reflects poor growth prospects, which may impact dividend sustainability. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, despite an average annual increase of -1.80%, underperforming approximately 70.55% of global competitors. Furthermore, Mapfre SA's 3-year EPS growth rate and 5-year EBITDA growth rate of -2.80% and -2.00%, respectively, underperform relative to many global competitors.
Next Steps
In conclusion, while Mapfre SA's upcoming dividend payout is a positive sign for income-seeking investors, the company's dividend growth rate, payout ratio, profitability, and growth metrics present a mixed picture. The sustainability of Mapfre SA's dividends may hinge on the company's ability to navigate challenges and capitalize on opportunities within the insurance sector. As investors consider Mapfre SA as a potential addition to their portfolios, they should weigh these factors carefully. For those seeking high-dividend yield stocks, GuruFocus Premium offers a valuable tool with the High Dividend Yield Screener.
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.
