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Vibra Energia SA's Dividend Analysis

Assessing the Latest Dividend Declaration and Financial Health of Vibra Energia SA

Vibra Energia SA (PETRY) recently announced a dividend of $0.12 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-04-19. 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 Vibra Energia SA's dividend performance and assess its sustainability.

What Does Vibra Energia SA Do?

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Vibra Energia SA is engaged in the marketing and distribution of fuel and lubricants. The company's operating segments includes Retail; Consumer Market; Aviation Market and Special Market. It generates maximum revenue from the Retail segment. The business activities of the company include distribution, transportation, distribution and trading of all energy forms, chemical products and asphalt, provision of related services, and importing and exporting related items.

Vibra Energia SA's Dividend Analysis
Vibra Energia SA's Dividend Analysis

A Glimpse at Vibra Energia SA's Dividend History

Vibra Energia SA has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Vibra Energia SA's Dividend Yield and Growth

As of today, Vibra Energia SA currently has a 12-month trailing dividend yield of 3.74% and a 12-month forward dividend yield of 3.18%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Vibra Energia SA's annual dividend growth rate was -3.90%. Extended to a five-year horizon, this rate decreased to -10.70% per year. Based on Vibra Energia SA's dividend yield and five-year growth rate, the 5-year yield on cost of Vibra Energia SA stock as of today is approximately 2.12%.

Vibra Energia SA's Dividend Analysis
Vibra Energia SA'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, Vibra Energia SA's dividend payout ratio is 0.23. Vibra Energia SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Vibra Energia SA's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. Vibra Energia SA's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Vibra Energia SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Vibra Energia SA's revenue has increased by approximately 27.50% per year on average, a rate that outperforms approximately 88.03% 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, Vibra Energia SA's earnings increased by approximately 5.70% per year on average, a rate that outperforms approximately 42.25% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -1.60%, which outperforms approximately 28.21% of global competitors.

Next Steps

Considering Vibra Energia SA's track record of consistent dividend payments and its current financial health, investors may find the stock to be an appealing choice for dividend income. However, the negative dividend growth rate over the past years raises questions about the long-term growth potential of these dividends. The company's strong profitability and growth metrics could suggest a capacity for future dividend sustainability and potential increases. As value investors, it is crucial to weigh these factors against the backdrop of the overall market conditions and one's investment strategy. Will Vibra Energia SA continue to fuel investor portfolios with reliable dividends? Only time will tell, but the signs point to a company with a sturdy foundation capable of weathering economic fluctuations. For those seeking high-dividend yield opportunities, GuruFocus Premium users can explore further using the High Dividend Yield Screener.

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.