Exploring the Upcoming Dividend Payment and Historical Performance of Eramet SA (ERMAY, Financial)
Eramet SA (ERMAY) recently announced a dividend of $0.16 per share, payable on 2024-06-21, with the ex-dividend date set for 2024-06-05. 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 Eramet SAs dividend performance and assess its sustainability.
What Does Eramet SA Do?
Eramet SA is a French mining and metallurgical company focused on the extraction, production, and sale of alloying metals, principally Manganese, Nickel, Mineral Sands, and Lithium. The company is also engaged in the production and transformation of alloys. Manganese constitutes nearly half of Eramet's revenue, followed by Nickel. Geographically, the majority of the company's revenue is generated from Asia and the rest from Europe, North America, France, and other regions.
A Glimpse at Eramet SA's Dividend History
Eramet SA has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Eramet SA's Dividend Yield and Growth
As of today, Eramet SA currently has a 12-month trailing dividend yield of 3.38% and a 12-month forward dividend yield of 1.45%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Eramet SA's dividend yield and five-year growth rate, the 5-year yield on cost of Eramet SA stock as of today is approximately 3.38%.
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, Eramet SA's dividend payout ratio is 0.25. Eramet SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Eramet SA's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 5 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. Eramet SA's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Eramet SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Eramet SA's revenue has increased by approximately 2.80% per year on average, a rate that underperforms approximately 67.9% of global competitors.
Concluding Thoughts on Eramet SA's Dividend Outlook
The analysis of Eramet SA's dividend payments, growth rates, payout ratio, and profitability suggests a cautiously optimistic outlook for dividend sustainability. While the company has demonstrated a consistent ability to pay dividends, the expected decrease in forward dividend yield and the comparison with global competitors highlight areas for potential concern and careful monitoring. For value investors considering Eramet SA, it's crucial to weigh these factors alongside the overall financial health and market position of the company. 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.
