Unveiling the Dividend Performance and Sustainability of Spectris PLC (SEPJF)
An in-depth analysis of the dividend history, yield, growth rate, and future prospects of Spectris PLC (SEPJF)
Spectris PLC (SEPJF) recently announced a dividend of $0.25 per share, payable on 2023-11-10, with the ex-dividend date set for 2023-10-05. As investors look forward to this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. This article, drawing from GuruFocus data, offers an in-depth analysis of Spectris PLC's dividend performance and assesses its sustainability.
Understanding Spectris PLC
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Spectris PLC supplies measuring instruments for research and industrial applications. The firm operates in four segments: Industrial Solutions, which includes a range of specialty businesses involved in particle measurement and testing; Malvern Panalytical, which provides tools for measuring the structure, size, and amount of particles during research and production; HBK, which makes measuring tools for product design and improvement; and Omega, which provides tools for measuring and controlling temperature, humidity, pressure, and conductivity. Revenue is generated in Asia, Europe, and North America in industries such as pharmaceutical, mining, and academic research.
Exploring Spectris PLC's Dividend History
Spectris PLC has maintained a consistent dividend payment record since 2014, with dividends currently distributed on a bi-annual basis.
Assessing Spectris PLC's Dividend Yield and Growth
As of today, Spectris PLC currently has a 12-month trailing dividend yield of 2.41% and a 12-month forward dividend yield of 2.52%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Spectris PLC's annual dividend growth rate was 5.30%. Extended to a five-year horizon, this rate increased to 6.40% per year. And over the past decade, Spectris PLC's annual dividends per share growth rate stands at 6.70%.
Evaluating Dividend Sustainability: 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. As of 2023-06-30, Spectris PLC's dividend payout ratio is 0.58, suggesting that the company retains a significant part of its earnings for future growth and unexpected downturns.
Spectris PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Spectris PLC's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Future Prospects: Growth Metrics
Spectris PLC's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. However, Spectris PLC's revenue has increased by approximately -4.50% per year on average, a rate that underperforms approximately 74.29% 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, Spectris PLC's earnings increased by approximately -19.30% per year on average, a rate that underperforms approximately 84.07% of global competitors.
Conclusion
In conclusion, while Spectris PLC has maintained a consistent dividend payment record and exhibits good profitability, its growth metrics indicate some challenges. The company's revenue and EPS growth rates are underperforming compared to global competitors, which could impact its ability to sustain and increase dividends in the long run. Investors should continue to monitor these metrics and consider them in their investment decisions.
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This article first appeared on GuruFocus.
