Exploring the Dividend Dynamics of PT Indocement Tunggal Prakarsa Tbk (PITPF, Financial)
PT Indocement Tunggal Prakarsa Tbk (PITPF) recently announced a dividend of $90 per share, payable on 2024-06-14, with the ex-dividend date set for 2024-05-28. 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 Indocement Tunggal Prakarsa Tbk's dividend performance and assess its sustainability.
What Does PT Indocement Tunggal Prakarsa Tbk Do?
PT Indocement Tunggal Prakarsa Tbk manufactures and sells cement, concrete, and cement-related products. The firm operates in three segments: cement, ready-mix concrete, and aggregates quarries. The Cement segment, which generates the vast majority of revenue, sells cement under the Tiga Roda brand, primarily to retailers and the residential construction industry. The Ready-Mix Concrete segment sells concrete to the building and construction industries.
A Glimpse at PT Indocement Tunggal Prakarsa Tbk's Dividend History
PT Indocement Tunggal Prakarsa Tbk has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down PT Indocement Tunggal Prakarsa Tbk's Dividend Yield and Growth
As of today, PT Indocement Tunggal Prakarsa Tbk currently has a 12-month trailing dividend yield of 2.42% and a 12-month forward dividend yield of 1.27%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, PT Indocement Tunggal Prakarsa Tbk's annual dividend growth rate was -39.60%. Extended to a five-year horizon, this rate increased to -20.50% per year. And over the past decade, PT Indocement Tunggal Prakarsa Tbk's annual dividends per share growth rate stands at -8.60%.
Based on PT Indocement Tunggal Prakarsa Tbk's dividend yield and five-year growth rate, the 5-year yield on cost of PT Indocement Tunggal Prakarsa Tbk stock as of today is approximately 0.77%.
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 2024-03-31, PT Indocement Tunggal Prakarsa Tbk's dividend payout ratio is 0.32.
PT Indocement Tunggal Prakarsa Tbk's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PT Indocement Tunggal Prakarsa Tbk's profitability 8 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each of 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 Indocement Tunggal Prakarsa Tbk'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 PT Indocement Tunggal Prakarsa Tbk's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PT Indocement Tunggal Prakarsa Tbk's revenue has increased by approximately 10.70% per year on average, a rate that outperforms approximately 61.14% 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 Indocement Tunggal Prakarsa Tbk's earnings increased by approximately 5.00% per year on average, a rate that outperforms approximately 50.35% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 9.50%, which outperforms approximately 54.9% of global competitors.
Next Steps
Considering PT Indocement Tunggal Prakarsa Tbk's consistent dividend payments, growth in dividend rates, and robust payout ratio, the company presents an appealing case for investors seeking stable dividend income. With its strong profitability and growth metrics, PT Indocement Tunggal Prakarsa Tbk appears well-positioned to sustain its dividend payments, making it a potentially valuable addition to a dividend-focused investment portfolio. 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.
