Exploring the Sustainability and Growth Prospects of CSI Compressco LP's Dividend
CSI Compressco LP (CCLP, Financial) recently announced a dividend of $0.01 per share, payable on 2023-11-14, with the ex-dividend date set for 2023-10-27. 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 CSI Compressco LPs dividend performance and assess its sustainability.
About CSI Compressco LP
CSI Compressco LP is a limited partnership operating in the U.S. The company is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. It sells standard and custom-designed compressor packages and oil field fluid pump systems and provides aftermarket services and compressor package parts and components manufactured by third-party suppliers. In addition, the company provides compression services and equipment to natural gas and oil exploration and production, midstream, and transmission companies. The majority of the company's revenue comes from the United States.
CSI Compressco LP's Dividend History
CSI Compressco LP has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
CSI Compressco LP's Dividend Yield and Growth
As of today, CSI Compressco LP currently has a 12-month trailing dividend yield of 3.09% and a 12-month forward dividend yield of 3.09%. This suggests an expectation of same dividend payments over the next 12 months.
Extended to a five-year horizon, this rate decreased to -50.50% per year. And over the past decade, CSI Compressco LP's annual dividends per share growth rate stands at -38.40%.
Based on CSI Compressco LP's dividend yield and five-year growth rate, the 5-year yield on cost of CSI Compressco LP stock as of today is approximately 0.09%.
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, CSI Compressco LP's dividend payout ratio is 0.00.
CSI Compressco LP's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks CSI Compressco LP's profitability 4 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 2 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. CSI Compressco LP's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and CSI Compressco LP's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. CSI Compressco LP's revenue has increased by approximately -29.80% per year on average, a rate that underperforms than approximately 93.5% 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, CSI Compressco LP's earnings increased by approximately 34.50% per year on average, a rate that underperforms than approximately 35.67% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 24.00%, which underperforms than approximately 28.19% of global competitors.
Concluding Thoughts
Based on the analysis of CSI Compressco LP's dividend payments, growth rate, payout ratio, profitability and growth metrics, it appears that the sustainability of the company's dividend is questionable. The company's low growth rank, underperformance in revenue growth, and the low profitability rank all point towards potential risks in the future sustainability of the dividend. Investors should consider these factors carefully when making investment decisions.
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.
