Investigating the Dividend Sustainability of Genomma Lab Internacional SAB de CV
Genomma Lab Internacional SAB de CV (GNMLF, Financial) recently announced a dividend of $0.2 per share, payable on 2023-12-27, with the ex-dividend date set for 2023-12-22. 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 Genomma Lab Internacional SAB de CV's dividend performance and assess its sustainability.
What Does Genomma Lab Internacional SAB de CV Do?
Genomma Lab Internacional SAB de CV is a specialty and generic drug manufacturer. The company's stated goal is to improve and preserve the health and well-being of people through innovative, safe, and effective products. Genomma operates a wide variety of brands to serve different consumer needs, including pregnancy, pain medication, and deodorant. The company considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.
A Glimpse at Genomma Lab Internacional SAB de CV's Dividend History
Genomma Lab Internacional SAB de CV has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Genomma Lab Internacional SAB de CV's Dividend Yield and Growth
As of today, Genomma Lab Internacional SAB de CV currently has a 12-month trailing dividend yield of 2.67% and a 12-month forward dividend yield of 4.02%. This suggests an expectation of increased dividend payments over the next 12 months. However, Genomma Lab Internacional SAB de CV's dividend yield of 2.67% is near a 10-year low and underperforms than 27.57% of global competitors in the Drug Manufacturers industry, suggesting that the company's dividend yield may not be a compelling proposition for income investors.
Based on Genomma Lab Internacional SAB de CV's dividend yield and five-year growth rate, the 5-year yield on cost of Genomma Lab Internacional SAB de CV stock as of today is approximately 2.67%.
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, Genomma Lab Internacional SAB de CV's dividend payout ratio is 0.51.
Genomma Lab Internacional SAB de CV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Genomma Lab Internacional SAB de CV's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 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. Genomma Lab Internacional SAB de CV's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Genomma Lab Internacional SAB de CV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Genomma Lab Internacional SAB de CV's revenue has increased by approximately 10.50% per year on average, a rate that outperforms approximately 64.74% 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, Genomma Lab Internacional SAB de CV's earnings increased by approximately 25.90% per year on average, a rate that outperforms approximately 69.5% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 6.60%, which outperforms approximately 45.44% of global competitors.
Engaging Conclusion: Genomma Lab Internacional SAB de CV's Dividend Prospects
In conclusion, Genomma Lab Internacional SAB de CV's upcoming dividend payment, consistent dividend history, and robust growth metrics may appeal to investors seeking a balance between income and growth potential. The company's moderate payout ratio and strong profitability rank provide reassurance about the sustainability of its dividends. However, the relatively low dividend yield compared to industry peers indicates that while Genomma Lab Internacional SAB de CV may be a solid choice for value creation, it might not be the highest-yielding option for income-focused investors. Value investors considering Genomma Lab Internacional SAB de CV should weigh these factors carefully and monitor the company's ongoing performance and strategic initiatives to ensure alignment with their investment goals. For those looking to explore 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.
