peyto exploration investors

However, the dividend has been cut at least once in the past, and we’re concerned that what has been cut once, could be cut again. We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company’s net interest expense. Simply Wall Street Pty Ltd It’s good to see that Peyto Exploration & Development has been paying a dividend for a number of years. Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. Insider Trading. Peyto Exploration & Development reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk. This may be fine if earnings are growing, but it might not take much of a downturn for the dividend to come under pressure. When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Click the interactive chart for our full dividend analysis. Click here to see them for FREE on Simply Wall St. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. With net debt of 2.51 times its EBITDA, Peyto Exploration & Development’s debt burden is within a normal range for most listed companies. As Peyto Exploration & Development’s dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. Peyto Exploration & Development Corp. is concerned with its responsibilities to its employees, unit holders, the public at large, the environment, and its responsibility to be a good corporate citizen. - August 7 at 3:00 PM: Peyto Exploration & Development Corp. - May 23 at 10:25 PM: How Many Peyto Exploration & Development Corp. (TSE:PEY) Shares Did Insiders Buy, In The Last Year? - May 14 at 5:38 PM If you spot an error that warrants correction, please contact the editor at This article by Simply Wall St is general in nature. During the past nine-year period, the first annual payment was CA$1.44 in 2010, compared to CA$0.24 last year. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. With EBIT of 3.85 times its interest expense, Peyto Exploration & Development’s interest cover is starting to look a bit thin. Could Peyto Exploration & Development Corp. (TSE:PEY) be an attractive dividend share to own for the long haul? Could Peyto Exploration & Development Corp. be an attractive dividend share to own for the long haul?Investors are often drawn to strong companies with the idea of reinvesting the dividends. If a company is paying more than it earns, then the dividend might become unsustainable – hardly an ideal situation. In this analysis, Peyto Exploration & Development doesn’t shape up too well as a dividend stock. A modest decline in earnings per share is not great to see, but it doesn’t automatically make a dividend unsustainable. Yahoo is part of Verizon Media. We’d agree the yield does look enticing. Second, earnings per share have been essentially flat, and its history of dividend payments is chequered – having cut its dividend at least once in the past. ACN 600 056 611, Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Copyright © 2016 Peyto Exploration and Development Corp | Legal Notice | Sitemap xml, To submit an invoice through Open Invoice, * You must enter a keyword into the search, Position Description of the Chairman of the Board, Terms of Reference for the Audit Committee Chair, Compensation and Nominating Committee Charter, Terms of Reference for the Compensation and Nominating Committee Chair, Terms of Reference for the Reserves Committee Chair, Position Description of the President and Chief Executive Officer, Joint Disclosure, Confidentiality & Trading Policy. list of global stocks with a market capitalisation above $1bn and yielding more 3%. Investors are often drawn to strong companies with the idea of reinvesting the dividends. We have also put together a list of global stocks with a market capitalisation above $1bn and yielding more 3%. With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Peyto Exploration & Development is a new dividend aristocrat in the making. Some simple research can reduce the risk of buying Peyto Exploration & Development for its dividend – read on to learn more. This works out to a decline of approximately 83% over that time. Our research team consists of equity analysts with a public, market-beating track record. Still, if the company continues paying out such a high percentage of its profits, the dividend could be at risk if business turns sour. You can change your choices at any time by visiting Your Privacy Controls. With a payout ratio this high, we’d say its dividend is not well covered by earnings. Corporate Responsibility. Dividends are usually paid out of company earnings. Find out more about how we use your information in our Privacy Policy and Cookie Policy. If you are hoping to live on the income from dividends, it’s important to be a lot more stringent with your investments than the average punter. If you are hoping to live on the income from dividends, it’s important to be a lot more stringent with your investments than the average punter. Thank you for reading. Are Investors Undervaluing Peyto Exploration & Development Corp. (TSE:PEY) By 26%? The company paid out 63% of its free cash flow, which is not bad per se, but does start to limit the amount of cash Peyto Exploration & Development has available to meet other needs. We aim to bring you long-term focused research analysis driven by fundamental data. Simply Wall St has no position in the stocks mentioned. To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. Still, we’d vastly prefer to see EPS growth when researching dividend stocks. We’re not keen on the fact that Peyto Exploration & Development paid out such a high percentage of its income, although its cashflow is in better shape. Check their shareholdings in Peyto Exploration & Development in our latest insider ownership analysis. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. We’d find it hard to look past the flaws, and would not be inclined to think of it as a reliable dividend-payer. Over the past five years, it looks as though Peyto Exploration & Development’s EPS have declined at around 7.6% a year. Remember though, given the recent drop in its share price, Peyto Exploration & Development’s yield will look higher, even though the market may now be expecting a decline in its long-term prospects. Peyto Exploration & Development Corp.'s price-to-earnings (or "P/E") ratio of 10x might make it look like a buy right now compared to the market in Canada, where around half of the companies have P/E ratios above 16x and even P/E's above 39x are quite common.Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited. The first recorded dividend for Peyto Exploration & Development, in the last decade, was nine years ago. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Learn more about. We struggle to make a case for buying Peyto Exploration & Development for its dividend, given that payments have shrunk over the past nine years. Looking at the data, we can see that 93% of Peyto Exploration & Development’s profits were paid out as dividends in the last 12 months. While the dividend was not well covered by profits, at least they were covered by free cash flow. Comparing dividend payments to a company’s net profit after tax is a simple way of reality-checking whether a dividend is sustainable. We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development. Are management backing themselves to deliver performance? 24 Kippax St, Sydney ... We would like to share those documents with our investors and the public.

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