Mowi ASA's Dividend Analysis
Understanding Mowi ASA's Dividend Sustainability and Growth Prospects
Mowi ASA (MHGVY) recently announced a dividend of $0.14 per share, payable on 2023-12-04, with the ex-dividend date set for 2023-11-22. 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 Mowi ASA's dividend performance and assess its sustainability.
What Does Mowi ASA Do?
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Mowi ASA is a Norway based producer of farmed salmon. It distributes salmon and other processed seafood globally. The company focuses on producing high-quality fish by producing its fish eggs and nurturing the fish in the early stages of their life. The fish are processed and sold once each specimen reaches harvestable weight. Additionally, it owns secondary processor facilities that help transform the fish into ready-to-eat and packaged products.
A Glimpse at Mowi ASA's Dividend History
Mowi ASA has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Mowi ASA's Dividend Yield and Growth
As of today, Mowi ASA currently has a 12-month trailing dividend yield of 3.98% and a 12-month forward dividend yield of 3.79%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Mowi ASA's annual dividend growth rate was -13.90%. Based on Mowi ASA's dividend yield and five-year growth rate, the 5-year yield on cost of Mowi ASA stock as of today is approximately 3.98%.
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, Mowi ASA's dividend payout ratio is 0.81, which may suggest that the company's dividend may not be sustainable.
Mowi ASA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Mowi ASA's profitability 9 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each 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. Mowi ASA'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 Mowi ASA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Mowi ASA's revenue has increased by approximately 7.90% per year on average, outperforming approximately 53.89% 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, Mowi ASA's earnings increased by approximately 22.80% per year on average, outperforming approximately 65.87% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 4.00%, outperforms approximately 46.51% of global competitors.
Final Thoughts on Mowi ASA's Dividend Profile
In conclusion, while Mowi ASA (MHGVY) has demonstrated a consistent history of dividend payments and possesses a strong profitability rank, the dividend growth rate and payout ratio raise questions about the long-term sustainability of its dividend payments. Moreover, Mowi ASA's robust growth metrics, including revenue, EPS, and EBITDA growth rates, provide a positive outlook for the company's ability to maintain or potentially increase its dividend in the future. Investors should weigh these factors carefully when considering Mowi ASA as a dividend-paying stock in their portfolios. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using 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.
