Exploring the Dividend Performance and Sustainability of Elis SA (ELSSF, Financial)
Elis SA (ELSSF) recently announced a dividend of $0.43 per share, payable on 2024-05-29, with the ex-dividend date set for 2024-05-28. 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 Elis SA's dividend performance and assess its sustainability.
What Does Elis SA Do?
Elis SA provides multiservice solutions to various end markets including the hospitality, healthcare, and commerce industries. The company's products and services include providing flat linen, workwear, hygiene products, and well-being services. The company operates in various countries across Europe and Latin America, with a majority of revenue stemming from France.
A Glimpse at Elis SA's Dividend History
Elis SA has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Elis SA's Dividend Yield and Growth
As of today, Elis SA currently has a 12-month trailing dividend yield of 2.00% and a 12-month forward dividend yield of 2.08%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Elis SA's dividend yield and five-year growth rate, the 5-year yield on cost of Elis SA stock as of today is approximately 2.00%.
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 2023-12-31, Elis SA's dividend payout ratio is 0.24.
Elis SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Elis SA's profitability 7 out of 10 as of 2023-12-31, 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. Elis 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 Elis SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Elis SA's revenue has increased by approximately 11.00% per year on average, a rate that outperforms approximately 60.55% 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, Elis SA's earnings increased by approximately 91.00% per year on average, a rate that outperforms approximately 94.99% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 28.50%, which outperforms approximately 84.46% of global competitors.
Conclusion
Considering Elis SA's consistent dividend payments, growth in dividend yield, and robust financial health indicated by its payout ratio and profitability, the company appears well-positioned to sustain its dividends. These factors, combined with strong growth metrics, suggest that Elis SA could continue to be a reliable choice for dividend-seeking investors. For those looking to explore further, 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.
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