Latest news with #DalrympleBayInfrastructure
AU Financial Review
28-07-2025
- Business
- AU Financial Review
Hedge fund LHC Capital profits from new bet in Dalrymple Bay
LHC Capital has made a 14 per cent return in the last three months buoyed by a strong rebound in some of the hedge fund's biggest stock bets and a timely investment in Queensland's Dalrymple Bay Infrastructure that it says is on the cusp of a re-rating. The Sydney-based short seller started buying shares in Dalrymple Bay, the world's largest metallurgical coal export terminal, after US private equity giant Brookfield Infrastructure sold down a large chunk of its stake last month.
Yahoo
23-05-2025
- Business
- Yahoo
Here's Why We're Wary Of Buying Dalrymple Bay Infrastructure's (ASX:DBI) For Its Upcoming Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Dalrymple Bay Infrastructure Limited (ASX:DBI) is about to trade ex-dividend in the next two days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. In other words, investors can purchase Dalrymple Bay Infrastructure's shares before the 26th of May in order to be eligible for the dividend, which will be paid on the 12th of June. The company's upcoming dividend is AU$0.05875 a share, following on from the last 12 months, when the company distributed a total of AU$0.22 per share to shareholders. Last year's total dividend payments show that Dalrymple Bay Infrastructure has a trailing yield of 5.5% on the current share price of AU$4.10. If you buy this business for its dividend, you should have an idea of whether Dalrymple Bay Infrastructure's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing. We've discovered 2 warning signs about Dalrymple Bay Infrastructure. View them for free. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Dalrymple Bay Infrastructure distributed an unsustainably high 133% of its profit as dividends to shareholders last year. Without extenuating circumstances, we'd consider the dividend at risk of a cut. A useful secondary check can be to evaluate whether Dalrymple Bay Infrastructure generated enough free cash flow to afford its dividend. It paid out 87% of its free cash flow as dividends, which is within usual limits but will limit the company's ability to lift the dividend if there's no growth. It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Dalrymple Bay Infrastructure fortunately did generate enough cash to fund its dividend. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Very few companies are able to sustainably pay dividends larger than their reported earnings. See our latest analysis for Dalrymple Bay Infrastructure Click here to see the company's payout ratio, plus analyst estimates of its future dividends. When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Readers will understand then, why we're concerned to see Dalrymple Bay Infrastructure's earnings per share have dropped 14% a year over the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past four years, Dalrymple Bay Infrastructure has increased its dividend at approximately 5.7% a year on average. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. Dalrymple Bay Infrastructure is already paying out 133% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Should investors buy Dalrymple Bay Infrastructure for the upcoming dividend? It's never fun to see a company's earnings per share in retreat. What's more, Dalrymple Bay Infrastructure is paying out a majority of its earnings and over half its free cash flow. It's hard to say if the business has the financial resources and time to turn things around without cutting the dividend. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being. So if you're still interested in Dalrymple Bay Infrastructure despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. Our analysis shows 2 warning signs for Dalrymple Bay Infrastructure and you should be aware of them before buying any shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-03-2025
- Business
- Yahoo
Dalrymple Bay Infrastructure (ASX:DBI) Is Looking To Continue Growing Its Returns On Capital
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So on that note, Dalrymple Bay Infrastructure (ASX:DBI) looks quite promising in regards to its trends of return on capital. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Dalrymple Bay Infrastructure is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.072 = AU$239m ÷ (AU$3.4b - AU$120m) (Based on the trailing twelve months to December 2024). Therefore, Dalrymple Bay Infrastructure has an ROCE of 7.2%. In absolute terms, that's a low return, but it's much better than the Infrastructure industry average of 5.8%. See our latest analysis for Dalrymple Bay Infrastructure Above you can see how the current ROCE for Dalrymple Bay Infrastructure compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Dalrymple Bay Infrastructure for free. Dalrymple Bay Infrastructure's ROCE growth is quite impressive. The figures show that over the last four years, ROCE has grown 129% whilst employing roughly the same amount of capital. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects. To bring it all together, Dalrymple Bay Infrastructure has done well to increase the returns it's generating from its capital employed. And with the stock having performed exceptionally well over the last three years, these patterns are being accounted for by investors. In light of that, we think it's worth looking further into this stock because if Dalrymple Bay Infrastructure can keep these trends up, it could have a bright future ahead. On a separate note, we've found 2 warning signs for Dalrymple Bay Infrastructure you'll probably want to know about. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
