An In-depth Analysis of the Upcoming Dividend, Payout History, and Growth Metrics
Orbia Advance Corp SAB de CV (MXCHY, Financial) recently announced a dividend of $0.06 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-10-04. 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 deep dive into Orbia Advance Corp SAB de CV's dividend performance and assess its sustainability.
About Orbia Advance Corp SAB de CV
Orbia Advance Corp SAB de CV manufactures and sells a variety of chemical-based products and energy. The firm's operating segments are included in five business groups: i) Building and Infrastructure (under the Wavin brand), ii) Connectivity Solutions (under the Dura-Line brand), iii) Precision Agriculture (under the Netafim brand), iv) Fluorinated Solutions (under the Koura brand), and v) Polymer Solutions (under the Vestolit and Alphagary brands). The majority of revenue comes from the USA and Europe.
Orbia Advance Corp SAB de CV's Dividend History
Orbia Advance Corp SAB de CV has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Orbia Advance Corp SAB de CV's Dividend Yield and Growth
As of today, Orbia Advance Corp SAB de CV currently has a 12-month trailing dividend yield of 5.76% and a 12-month forward dividend yield of 5.77%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Orbia Advance Corp SAB de CV's annual dividend growth rate was -11.10%. Extended to a five-year horizon, this rate increased to 8.30% per year. And over the past decade, Orbia Advance Corp SAB de CV's annual dividends per share growth rate stands at 8.10%.
Based on Orbia Advance Corp SAB de CV's dividend yield and five-year growth rate, the 5-year yield on cost of Orbia Advance Corp SAB de CV stock as of today is approximately 8.58%.
Is Orbia Advance Corp SAB de CV's Dividend Sustainable?
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 2023-06-30, Orbia Advance Corp SAB de CV's dividend payout ratio is 2.27. This may suggest that the company's dividend may not be sustainable.
Orbia Advance Corp SAB de CV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Orbia Advance Corp SAB de CV's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Orbia Advance Corp SAB de CV's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Orbia Advance Corp SAB de CV's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Orbia Advance Corp SAB de CV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Orbia Advance Corp SAB de CV's revenue has increased by approximately 15.20% per year on average, a rate that outperforms approximately 67.06% 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, Orbia Advance Corp SAB de CV's earnings increased by approximately 44.90% per year on average, a rate that outperforms approximately 80.13% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 22.10%, outperforms approximately 71.78% of global competitors.
Final Thoughts
Orbia Advance Corp SAB de CV's dividend payments, dividend growth rate, payout ratio, profitability and growth metrics all paint a comprehensive picture of the company's financial health and future prospects. While the company's payout ratio suggests potential sustainability issues, its strong profitability and growth metrics offer a more promising outlook. Investors should keep a close eye on these factors to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
