An In-Depth Look at Exmar NV's Upcoming Dividend and Its Sustainability
Exmar NV (EXMRF, Financial) recently announced a dividend of $0.78 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 Exmar NV's dividend performance and assess its sustainability.
What Does Exmar NV Do?
Exmar NV is a liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carrier. It provides industrial marine and energy logistical solutions for transport, regasification, and liquefaction within the oil and gas industry. The company has three reportable segments: Shipping, Infrastructure, and Supporting services. The activities in the shipping segment include the transportation of liquefied gas products such as Liquid Petroleum Gas, anhydrous ammonia, and petrochemical gases; The infrastructure segment includes LNG infrastructure and Offshore and the segment supporting services include the specialized supporting services such as ship management services and travel agency services. Majority of the revenue is generated from the Shipping segment.
A Glimpse at Exmar NV's Dividend History
Exmar NV has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Exmar NV's Dividend Yield and Growth
As of today, Exmar NV currently has a 12-month trailing dividend yield of 89.47% and a 12-month forward dividend yield of 86.46%. This suggests an expectation of decreased dividend payments over the next 12 months. Exmar NV's dividend yield of 89.47% is near a 10-year high and outperforms 99.4% of global competitors in the Oil & Gas industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Exmar NV's dividend yield and five-year growth rate, the 5-year yield on cost of Exmar NV stock as of today is approximately 89.47%.
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, Exmar NV's dividend payout ratio is 5.74, which may suggest that the company's dividend may not be sustainable.
Exmar NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Exmar NV's profitability 6 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Exmar NV's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Exmar NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Exmar NV's revenue has increased by approximately 23.80% per year on average, a rate that outperforms approximately 61.74% 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, Exmar NV's earnings increased by approximately -6.90% per year on average, a rate that outperforms approximately 24.09% of global competitors.
Conclusion
Exmar NV's robust dividend yield, combined with a sustainable payout ratio and solid profitability metrics, presents an appealing opportunity for income-focused investors. However, the slightly negative EPS growth rate suggests the need for cautious optimism. Investors should consider both the potential rewards and risks associated with Exmar NV's dividend strategy. 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.
