Understanding Amadeus IT Group SA's Dividend Dynamics
Amadeus IT Group SA (AMADY, Financial) recently announced a dividend of $0.48 per share, payable on 2024-02-02, with the ex-dividend date set for 2024-01-16. 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 Amadeus IT Group SA's dividend performance and assess its sustainability.
What Does Amadeus IT Group SA Do?
Among the top three operators, Amadeus IT Group SA's 40%-plus market share in air global distribution system bookings is the largest in the industry. The GDS segment represented 56% of total prepandemic sales in 2019. The company has a growing IT solutions division (44% of 2019 revenue) that addresses the airline, airport, rail, hotel, and business intelligence markets. Transaction fees, which are tied to volume and not price, account for the bulk of sales and profits.
A Glimpse at Amadeus IT Group SA's Dividend History
Amadeus IT Group SA has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Amadeus IT Group SA's Dividend Yield and Growth
As of today, Amadeus IT Group SA currently has a 12-month trailing dividend yield of 1.19% and a 12-month forward dividend yield of 1.86%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Amadeus IT Group SA's dividend yield and five-year growth rate, the 5-year yield on cost of Amadeus IT Group SA stock as of today is approximately 1.19%.
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 2023-06-30, Amadeus IT Group SA's dividend payout ratio is 0.00.
Amadeus IT Group SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Amadeus IT Group SA's profitability 7 out of 10 as of 2023-06-30, 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. Amadeus IT Group SA's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Amadeus IT Group SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Amadeus IT Group SA's revenue has increased by approximately -9.20% per year on average, a rate that underperforms approximately 69.33% 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, Amadeus IT Group SA's earnings increased by approximately -16.70% per year on average, a rate that underperforms approximately 75.28% of global competitors.
Next Steps for Investors
Considering Amadeus IT Group SA's consistent dividend payments, modest dividend growth rate, low payout ratio, and solid profitability, the company presents itself as a potentially attractive option for value investors focused on income generation. With growth metrics indicating a competitive stance, albeit with room for improvement, Amadeus IT Group SA's dividends appear sustainable in the near term. Investors should continue to monitor the company's financial health and market position to ensure that the dividends can be maintained or grown over time. For those looking to expand their portfolio with dividend-paying stocks, 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.
