Assessing the Sustainability of ITAYY's Upcoming Dividend
PT Indo Tambangraya Megah Tbk (ITAYY, Financial) recently announced a dividend of $0.22 per share, payable on 2024-05-10, with the ex-dividend date set for 2024-04-17. 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 PT Indo Tambangraya Megah Tbk's dividend performance and assess its sustainability.
What Does PT Indo Tambangraya Megah Tbk Do?
PT Indo Tambangraya Megah Tbk is an Indonesia-based coal mining company. It operates in three segments: Upstream business, which includes coal mining, blending, and sales; Energy supply chain management segment includes fuel distribution, sales, and logistics, as well as empowerment of internal mining contractors; and Downstream segment includes the development of power plants and renewable energy ventures. The company's geographical segments include Taiwan, China, Hong Kong, and Korea; Domestic; South East Asia (excluding Indonesia), India, and Pakistan; Japan; Europe; and Australia & Oceania.
A Glimpse at PT Indo Tambangraya Megah Tbk's Dividend History
PT Indo Tambangraya Megah Tbk has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down PT Indo Tambangraya Megah Tbk's Dividend Yield and Growth
As of today, PT Indo Tambangraya Megah Tbk currently has a 12-month trailing dividend yield of 33.90% and a 12-month forward dividend yield of 15.91%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, PT Indo Tambangraya Megah Tbk's annual dividend growth rate was 120.60%. Extended to a five-year horizon, this rate decreased to 28.40% per year. And over the past decade, PT Indo Tambangraya Megah Tbk's annual dividends per share growth rate stands at an impressive 11.40%.
Based on PT Indo Tambangraya Megah Tbk's dividend yield and five-year growth rate, the 5-year yield on cost of PT Indo Tambangraya Megah Tbk stock as of today is approximately 118.31%.
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 2023-12-31, PT Indo Tambangraya Megah Tbk's dividend payout ratio is 1.38, which may suggest that the company's dividend may not be sustainable.
PT Indo Tambangraya Megah Tbk's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PT Indo Tambangraya Megah Tbk's profitability 9 out of 10 as of 2023-12-31, 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. PT Indo Tambangraya Megah Tbk'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 PT Indo Tambangraya Megah Tbk's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PT Indo Tambangraya Megah Tbk's revenue has increased by approximately 28.60% per year on average, a rate that outperforms approximately 61.16% 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, PT Indo Tambangraya Megah Tbk's earnings increased by approximately 104.70% per year on average, a rate that outperforms approximately 90.91% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 41.10%, which outperforms approximately 75.58% of global competitors.
Concluding Insights on PT Indo Tambangraya Megah Tbk's Dividend Profile
Considering PT Indo Tambangraya Megah Tbk's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors are provided with a comprehensive view of the company's dividend sustainability. While the high dividend yield is attractive, the payout ratio raises questions about long-term maintainability. However, the company's strong profitability and growth indicators suggest a capacity to continue rewarding shareholders. As investors contemplate the future of PT Indo Tambangraya Megah Tbk's dividends, they should weigh these factors carefully. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers the High Dividend Yield Screener as a valuable tool for discovery and analysis.
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.
