Yahoo Finance Tomra Systems ASA's Dividend Analysis
Dissecting the Upcoming Dividend and Historical Performance of TMRAY
Tomra Systems ASA (TMRAY) recently announced a dividend of $0.18 per share, payable on 2024-05-20, with the ex-dividend date set for 2024-04-26. 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 Tomra Systems ASA's dividend performance and assess its sustainability.
What Does Tomra Systems ASA Do?
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Tomra Systems ASA provides sorting and recycling solutions to equip customers for handling waste. The company creates and delivers sensor-based solutions that contribute to optimal resource productivity, in the business areas of packaging, collection, compaction, recycling, ore sorting and food production. It provides reverse vending machines, sensor-based sorting machines and integrated post-harvest solutions, sensors for waste sorting applications, and other related products and solutions. The company's operating segments are; TOMRA Collection which generates key revenue, TOMRA Recycling, and TOMRA Food. Geographically, the company generates revenue from Northern Europe, America, Asia, Oceania, and the rest of Europe.
A Glimpse at Tomra Systems ASA's Dividend History
Tomra Systems ASA has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Tomra Systems ASA's Dividend Yield and Growth
As of today, Tomra Systems ASA currently has a 12-month trailing dividend yield of 1.26% and a 12-month forward dividend yield of 1.35%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Tomra Systems ASA's annual dividend growth rate was 9.40%. Extended to a five-year horizon, this rate decreased to 9.10% per year. And over the past decade, Tomra Systems ASA's annual dividends per share growth rate stands at an impressive 11.70%.
Based on Tomra Systems ASA's dividend yield and five-year growth rate, the 5-year yield on cost of Tomra Systems ASA stock as of today is approximately 1.95%.
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, Tomra Systems ASA's dividend payout ratio is 0.76, which may suggest that the company's dividend could be sustainable given its profitability.
Tomra Systems ASA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Tomra Systems ASA's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Tomra Systems ASA'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 Tomra Systems ASA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Tomra Systems ASA's revenue has increased by approximately 14.00% per year on average, a rate that outperforms approximately 67.94% 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, Tomra Systems ASA's earnings increased by approximately -3.50% per year on average, a rate that outperforms approximately 35.26% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.10%, which outperforms approximately 28.21% of global competitors.
Next Steps
In conclusion, Tomra Systems ASA's upcoming dividend payment, combined with its history of consistent payouts and a solid dividend growth rate, presents an attractive proposition for investors. The company's manageable payout ratio, alongside strong profitability and growth metrics, further supports the potential for ongoing dividend sustainability. As investors consider the future prospects of Tomra Systems ASA, they can also utilize tools like the GuruFocus High Dividend Yield Screener to explore other high-dividend yield opportunities. Will Tomra Systems ASA continue its trajectory of rewarding shareholders, and how will it adapt to future market conditions? These are critical considerations for value investors looking to make informed decisions.
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.
This article first appeared on GuruFocus.
