Vallourec paid a total dividend of 103 million EUR last year, for a market capitalization of 514 millions.
Dividend per share of Vallourec is 0.81 EUR, and his stock market price 4.05 EUR.
According to the chart, where dividend yield is displayed, Vallourec has a dividend yield of 20.00%, which is higher than the amount offered by both the market average and companies from France. It is also bigger than average of Industrials industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.
About the ability of Vallourec to maintain his current dividend of EUR 0.81 per share, an amount that accounts for 20.00%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Vallourec payout on ernings is currently -12.00%, which is lower than the market average and companies of Industrials industry, which are 39.01% and 36.49% respectively. Both figures lead us to believe that there is confidence that Valloureccan maintain his current dividend.
The payout on earnings should be complemented with the payout on cash flow since it is this latter amount the one which can be distributed to shareholders. Cash flow per share of Vallourec is EUR 5.06 per share, which is higher than the dividend per share paid by the company of EUR 0.81, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Vallourec, compared againt world market average, France companies, Industrials industry and Industrial Engineering sector companies. You might also need to check full financial report of Vallourec.
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