A Comprehensive Analysis of Essentra PLC's Dividend Performance and Sustainability
Essentra PLC (FLRAF, Financial) recently announced a dividend of $0.01 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-09-21. As investors eagerly anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, let's delve into Essentra PLC's dividend performance and assess its sustainability.
Understanding Essentra PLC's Business Model
Essentra PLC manufactures and sells components. The company is organized into three segments based on product type: components, packaging, and filters. These segments cater to various sectors, including industrial, consumer equipment, health and personal care, and food and drink packaging. Essentra sells its products worldwide, with the majority of revenue generated from Europe and Africa.
Essentra PLC's Dividend History at a Glance
Essentra PLC has maintained a consistent dividend payment record since 2021, distributing dividends bi-annually. The chart below shows annual Dividends Per Share for tracking historical trends.
Exploring Essentra PLC's Dividend Yield and Growth
Currently, Essentra PLC has a 12-month trailing dividend yield of 2.06% and a 12-month forward dividend yield of 1.46%, indicating an expected decrease in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was -32.70%. Considering these figures, the 5-year yield on cost of Essentra PLC stock is approximately 2.06% as of today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio, which represents the portion of earnings distributed as dividends, is a key indicator of dividend sustainability. A lower ratio suggests that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, Essentra PLC's dividend payout ratio is 0.00. Additionally, Essentra PLC's profitability rank of 5 out of 10 suggests fair profitability, with net profit reported in 7 out of the past 10 years.
Essentra PLC's Growth Metrics: A Glimpse into the Future
Robust growth metrics are essential for dividend sustainability. Essentra PLC's growth rank of 5 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, despite underperforming approximately 97.85% of global competitors.
Essentra PLC's Dividend: A Final Verdict
Despite a challenging dividend growth rate and a decreasing forward dividend yield, Essentra PLC's consistent dividend payment record and fair growth outlook suggest potential for future improvement. However, investors should closely monitor the company's growth metrics and profitability to assess the sustainability of its dividends. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
