Insights into ALS Ltd's Upcoming Dividend Payment
ALS Ltd (CPBLF, Financial) recently announced a dividend of $0.2 per share, payable on 2023-12-14, with the ex-dividend date set for 2023-11-24. 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 ALS Ltd's dividend performance and assess its sustainability.
What Does ALS Ltd Do?
Founded in the 1880s and listing on the ASX in 1952, ALS Ltd operates three divisions: commodities, life sciences, and industrial. ALS commodities traditionally generated the majority of underlying earnings, providing geochemistry, metallurgy, inspection and mine site services for the global mining industry. Expansion into environmental, pharmaceutical and food testing areas and commodity price weakness have lessened earnings exposure to commodities.
A Glimpse at ALS Ltd's Dividend History
ALS Ltd has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down ALS Ltd's Dividend Yield and Growth
As of today, ALS Ltd currently has a 12-month trailing dividend yield of 3.38% and a 12-month forward dividend yield of 3.19%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, ALS Ltd's annual dividend growth rate was 17.50%. Extended to a five-year horizon, this rate decreased to 15.50% per year. And over the past decade, ALS Ltd's annual dividends per share growth rate stands at -2.80%.
Based on ALS Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of ALS Ltd stock as of today is approximately 6.95%.
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 2023-09-30, ALS Ltd's dividend payout ratio is 0.66.
ALS Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks ALS Ltd's profitability 7 out of 10 as of 2023-09-30, 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. ALS Ltd'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 ALS Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. ALS Ltd's revenue has increased by approximately 7.50% per year on average, outperforming approximately 58.29% 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, ALS Ltd's earnings increased by approximately 24.60% per year on average, outperforming approximately 70.8% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 16.90%, outperforms approximately 68.6% of global competitors.
Concluding Thoughts on ALS Ltd's Dividend Prospects
Considering ALS Ltd's consistent dividend payments, robust dividend growth rate, moderate payout ratio, and strong profitability and growth metrics, the company presents itself as a potentially attractive option for value investors seeking dividend income. The future prospects of ALS Ltd, supported by its strategic expansion and solid financial performance, suggest that its dividend payments could be sustainable. However, investors should always consider the broader market conditions and individual investment goals before making any 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.
