Yahoo Finance CAR Group Ltd's Dividend Analysis
An Insightful Look at the Upcoming Dividend Payment and the Company's Financial Health
CAR Group Ltd (CSXXY) recently announced a dividend of $0.45 per share, payable on 2024-04-29, with the ex-dividend date set for 2024-03-15. 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 CAR Group Ltd's dividend performance and assess its sustainability.
What Does CAR Group Ltd Do?
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CAR Group Ltd is a technology company operating in the motor vehicles sector. Its primary business is its Australian online marketplace for automotive, www.carsales.com.au. It is the dominant online automotive marketplace in Australia, at around nine times total time spent compared with its nearest competitor. CAR Group Ltd also owns and operates businesses in various geographic, category and product adjacencies, including online marketplaces for automotive in South Korea and Latin America, nonautomotive online marketplaces in Australia and the United States, and data and replacement parts businesses.
A Glimpse at CAR Group Ltd's Dividend History
CAR Group Ltd has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down CAR Group Ltd's Dividend Yield and Growth
As of today, CAR Group Ltd currently has a 12-month trailing dividend yield of 1.63% and a 12-month forward dividend yield of 1.76%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, CAR Group Ltd's annual dividend growth rate was 5.60%. Extended to a five-year horizon, this rate decreased to 5.10% per year. And over the past decade, CAR Group Ltd's annual dividends per share growth rate stands at 7.20%.
Based on CAR Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of CAR Group Ltd stock as of today is approximately 2.09%.
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, CAR Group Ltd's dividend payout ratio is 0.64.
CAR Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks CAR Group Ltd'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. CAR Group Ltd'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 CAR Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. CAR Group Ltd's revenue has increased by approximately 12.60% per year on average, a rate that outperforms approximately 58.25% 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, CAR Group Ltd's earnings increased by approximately 7.40% per year on average, a rate that outperforms approximately 48.86% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 6.60%, which outperforms approximately 33.49% of global competitors.
Engaging Conclusion: Evaluating CAR Group Ltd's Dividend Prospects
Considering CAR Group Ltd's consistent dividend payments, solid growth rate, reasonable payout ratio, and strong profitability and growth metrics, the company's dividend appears to be on a sustainable path. For value investors seeking income-generating stocks, CAR Group Ltd presents a compelling case backed by a solid financial foundation and promising future prospects. Will CAR Group Ltd continue to reward its shareholders with growing dividends? Only time will tell, but the signs are certainly encouraging. For those interested in discovering more high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to find potential investments.
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.
