Insights into Evolution AB's Upcoming Dividend and Historical Performance
Evolution AB (EVVTY, Financial) recently announced a dividend of $2.88 per share, payable on 2024-05-20, with the ex-dividend date set for 2024-04-29. 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 Evolution AB's dividend performance and assess its sustainability.
What Does Evolution AB Do?
Evolution AB is a B2B provider of live and slots casino systems. The Company develops, produces, markets, and licenses fully integrated online casino systems to gaming operators. The company provides business-to-business solutions, which it develops and produces for gaming operators. Evolution's primary product, Live Casino, allows a human dealer to run a real-time casino table, which is then streamed to digital devices. Players can then place bets on desktops, smartphones, and tablets and communicate with the dealer through Evolution's software. The company's services are licensed to casino operators. The company generates the vast majority of its revenue from Asia.
A Glimpse at Evolution AB's Dividend History
Evolution AB has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Evolution AB's Dividend Yield and Growth
As of today, Evolution AB currently has a 12-month trailing dividend yield of 1.88% and a 12-month forward dividend yield of 2.48%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Evolution AB's annual dividend growth rate was 73.60%. Extended to a five-year horizon, this rate decreased to 69.30% per year. Based on Evolution AB's dividend yield and five-year growth rate, the 5-year yield on cost of Evolution AB stock as of today is approximately 26.15%.
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 2024-03-31, Evolution AB's dividend payout ratio is 0.00.
Evolution AB's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Evolution AB's profitability 10 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Evolution AB's growth rank of 10 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Evolution AB's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Evolution AB's revenue has increased by approximately 45.30% per year on average, a rate that outperforms approximately 87.03% 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, Evolution AB's earnings increased by approximately 53.10% per year on average, a rate that outperforms approximately 80.04% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 65.80%, which outperforms approximately 97.5% of global competitors.
Next Steps
Evolution AB's dividend payments, robust dividend growth rate, low payout ratio, and high profitability and growth metrics paint a promising picture for income-focused investors. The company's strong financial health and growth prospects suggest that its dividend payments are not only sustainable but also have the potential to grow. Value investors considering dividend stocks may find Evolution AB an attractive option, particularly given its impressive track record and future outlook. Will Evolution AB continue to reward its shareholders with increasing dividends? That's a question worth exploring as we watch the company's performance unfold in the dynamic gaming industry.
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.
