Energix-Renewable Energies Ltd Dividend Analysis

An in-depth look at Energix-Renewable Energies Ltd’s sustainability and dividend growth prospects

Energix-Renewable Energies Ltd (ENREF) recently declared a dividend of $0.1 per share, payable on June 18, 2024, with an ex-dividend date of June 4, 2024. As investors look forward to this upcoming payment, the focus attention is also paid to the company’s dividend history, profitability and growth rate. Using data from GuruFocus, let’s take a look at Energix-Renewable Energies Ltd’s dividend performance and assess its sustainability.

What does Energix-Renewable Energies Ltd do?

Energix-Renewable Energies Ltd is an Israeli renewable energy company focused on solar (photovoltaic) and wind energy. The Group operates in two reporting segments, namely the Photovoltaics segment and the Wind segment. It deals with the development, planning and implementation of projects for the production and sale of electricity using its own photovoltaic systems within the Photovoltaics segment. The company is also involved in planning and implementing projects for the production and sale of electricity using wind energy. Its wind energy projects are located in Israel and Poland. The group generates most of its revenues from the Wind segment.

A look at Energix-Renewable Energies Ltd’s dividend history

Energix-Renewable Energies Ltd has maintained a consistent dividend payment history through 2021. Currently, dividends are paid quarterly. Below is a chart showing the annual dividend per share so you can track historical trends.

Energix-Renewable Energies Ltd. Profitability and Dividend Growth Summary

As of today, Energix-Renewable Energies Ltd currently has a 12-month dividend yield of 2.19% and a 12-month forward dividend yield of 2.84%. This suggests the expectation of increased dividend payments over the next 12 months. Over the last three years, Energix-Renewable Energies Ltd’s annual dividend growth rate has been 20.50%. Based on Energix-Renewable Energies Ltd’s dividend yield and five-year growth rate, the 5-year yield on Energix-Renewable Energies Ltd’s share cost as of today is approximately 2.19%.

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Sustainability Question: Payout Ratio and Profitability

To assess dividend sustainability, you need to evaluate the company’s payout ratio. The dividend payout ratio provides insight into the portion of profits a company pays out as dividends. A lower ratio suggests that the company is retaining a significant portion of its profits, thus ensuring that funds are available for future growth and unexpected downturns. As of March 31, 2024, Energix-Renewable Energies Ltd’s dividend payout ratio is 1.01, which may suggest that the company’s dividend may not be sustainable. The Energix-Renewable Energies Ltd Profitability Ranking enables you to understand a company’s performance compared to its competitors. GuruFocus rates Energix-Renewable Energies Ltd’s profitability at 8 out of 10 as of March 31, 2024, suggesting good profitability prospects. The company has recorded a net profit for 9 of the last 10 years.

Growth rates: future prospects

To ensure that dividends are sustainable, a company must have solid growth rates. Energix-Renewable Energies Ltd’s growth rating of 8 out of 10 suggests that the company’s growth trajectory is good compared to its competitors. Revenue is the lifeblood of any company, and Energix-Renewable Energies Ltd’s earnings per share combined with its three-year revenue growth rate indicates a strong revenue model. Energix-Renewable Energies Ltd’s revenues grew at an average annual rate of approximately 31.10%, a rate that outperformed approximately 79.14% of its global peers. A company’s three-year EPS growth rate shows its ability to grow earnings, which is a key element in maintaining dividends over the long term. Over the past three years, Energix-Renewable Energies Ltd’s earnings have grown at an average annual rate of approximately 42.60%, a rate that is outpacing approximately 77.85% of its global peers. Finally, the company’s 5-year EBITDA growth rate of 39.60%, which is better than about 85.85% of its global competitors.

Conclusion: Energix-Renewable Energies Ltd Dividend Forecast

Given Energix-Renewable Energies Ltd’s consistent dividend payments, solid growth rates, and reasonable payout ratio, the company appears well-positioned to sustain its dividends. However, investors should pay attention to the payout ratio and profitability ratios to ensure long-term stability. GuruFocus Premium users can screen high dividend stocks using the High Dividend Yield Screener.

This article, generated by GuruFocus, is intended to provide general insights and is not tailored financial advice. Our commentary is based on historical data and analyst forecasts, is based on an unbiased methodology and is not intended to serve as detailed investment guidance. It does not formulate a recommendation to purchase or sell any shares and does not take into account individual investment goals or financial situation. Our goal is to deliver long-term, fundamental, data-driven analysis. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative information. GuruFocus has no position in the stocks mentioned herein.

This article first appeared on GuruFocus.