Exploring the Dividend Sustainability and Growth Prospects of Getlink SE (GRPTF, Financial)
Getlink SE (GRPTF) recently announced a dividend of $0.55 per share, payable on 2024-06-05, with the ex-dividend date set for 2024-05-30. 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 Getlink SE's dividend performance and assess its sustainability.
What Does Getlink SE Do?
Getlink SE is a French industrial company focused on road and passenger transportation. The company is organized into four segments: the Eurotunnel segment, the Europorte segment, the ElecLink segment, and the Getlink segment. The Eurotunnel segment contributes the majority of revenue. It includes the shuttle service for vehicles and passengers and payments made for the use of the railway network by high-speed passenger trains (Eurostar) and by train operators' rail freight services. The Europorte rail freight segment includes rail freight subsidiaries across France and the United Kingdom. The ElecLink segment operates an electricity interconnector between France and Great Britain. The company generates majority of the revenue from the Eurotunnel segment.
A Glimpse at Getlink SE's Dividend History
Getlink SE has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis.
Breaking Down Getlink SE's Dividend Yield and Growth
As of today, Getlink SE currently has a 12-month trailing dividend yield of 3.25% and a 12-month forward dividend yield of 3.62%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Getlink SE's dividend yield and five-year growth rate, the 5-year yield on cost of Getlink SE stock as of today is approximately 3.25%.
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, Getlink SE's dividend payout ratio is 0.72. This may suggest that the company's dividend may not be sustainable.
Getlink SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Getlink SE's profitability 8 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. Getlink SE's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Getlink SE's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Getlink SE's revenue has increased by approximately 30.70% per year on average, a rate that outperforms approximately 84.62% of global competitors.
Conclusion
The analysis of Getlink SE's dividend payments, growth rates, payout ratio, profitability, and revenue metrics suggests a complex picture. While the company shows strong revenue growth and profitability, the sustainability of its dividends, given the current payout ratio, might be a concern for some investors. As always, it's crucial for investors to consider these factors in light of their personal investment strategy and market conditions. 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.
