Exploring the Dividend History, Yield, Growth, and Sustainability of PT Indo Tambangraya Megah Tbk (PTIZF, Financial)
PT Indo Tambangraya Megah Tbk(PTIZF) recently announced a dividend of $2660 per share, payable on 2023-09-22, with the ex-dividend date set for 2023-09-12. 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 deep dive into PT Indo Tambangraya Megah Tbks dividend performance and assess its sustainability.
Company Overview: PT Indo Tambangraya Megah Tbk
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.
Dividend History of PT Indo Tambangraya Megah Tbk
PT Indo Tambangraya Megah Tbk has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Understanding 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 35.97% and a 12-month forward dividend yield of 31.43%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, PT Indo Tambangraya Megah Tbk's annual dividend growth rate was 40.40%. Extended to a five-year horizon, this rate decreased to 5.30% per year. And over the past decade, PT Indo Tambangraya Megah Tbk's annual dividends per share growth rate stands at 0.10%.
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 46.57%.
Assessing Dividend Sustainability: 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 2023-06-30, PT Indo Tambangraya Megah Tbk's dividend payout ratio is 0.75. This 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 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Looking Ahead: Growth Metrics and 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 32.80% per year on average, a rate that outperforms than approximately 68.91% 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 116.10% per year on average, a rate that outperforms than approximately 85.12% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 29.50%, which outperforms than approximately 64.63% of global competitors.
Concluding Thoughts
PT Indo Tambangraya Megah Tbk has demonstrated an impressive dividend track record, with a high yield and consistent growth. However, its high payout ratio raises questions about the sustainability of future dividends. Despite this, the company's strong profitability and growth metrics suggest a positive outlook, which could potentially support ongoing dividend payments. Investors should closely monitor these factors when considering PT Indo Tambangraya Megah Tbk as a potential dividend investment.
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