An In-depth Look at Komercni Banka AS's Upcoming Dividend and Financial Health
Komercni Banka AS (KMERF) recently announced a dividend of $82.66 per share, payable on 2024-05-27, with the ex-dividend date set for 2024-05-03. 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 Komercni Banka AS's dividend performance and assess its sustainability.
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Komercni Banka AS is a universal bank providing a wide range of retail, corporate, and investment banking activities. These activities are complemented by specialized financial services provided by its subsidiaries. The bank operates mainly in the Czech Republic, as well as provides some services to corporate clients in Slovakia. The bank emphasizes long-term client relationships and creating solutions based on client feedback. The majority of the bank's net revenue is net interest income mainly from loans and advances to customers. The bank's loan portfolio is tilted toward the real estate, wholesale, and transportation industries, as well as public administration.
A Glimpse at Komercni Banka AS's Dividend History
Komercni Banka AS has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Komercni Banka AS's Dividend Analysis
Breaking Down Komercni Banka AS's Dividend Yield and Growth
As of today, Komercni Banka AS currently has a 12-month trailing dividend yield of 7.84% and a 12-month forward dividend yield of 10.06%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Komercni Banka AS's dividend yield and five-year growth rate, the 5-year yield on cost of Komercni Banka AS stock as of today is approximately 7.84%.
Komercni Banka AS's Dividend Analysis
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, Komercni Banka AS's dividend payout ratio is 0.69.
Komercni Banka AS's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Komercni Banka AS's profitability 4 out of 10 as of 2023-12-31, suggesting the dividend may not be sustainable. The company has reported positive net income for each of 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. Komercni Banka AS's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Komercni Banka AS's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Komercni Banka AS's revenue has increased by approximately 6.80% per year on average, a rate that underperforms than approximately 50.28% 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, Komercni Banka AS's earnings increased by approximately 24.10% per year on average, a rate that underperforms than approximately 31.3% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 3.40%, which underperforms than approximately 66.7% of global competitors.
Considering Komercni Banka AS's dividend payout, profitability, and growth metrics, investors should weigh these factors carefully against their investment strategy. While the bank shows a strong dividend yield and consistent payment history, its moderate profitability and growth metrics suggest caution. As always, prospective and current investors are encouraged to consider how these factors align with their portfolio objectives.
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.