Shareholder Yield is an integrated metric that represents the total returns a company delivers to its shareholders, including dividends, share buybacks, and debt reduction. It offers a holistic view of a company's capital return strategies, going beyond simple dividend yields to encompass all forms of shareholder returns.
Components
The calculation of Shareholder Yield involves summing the dividend yield, buyback yield, and debt paydown yield:
• Dividend Yield is calculated by dividing the annual dividends per share by the stock price per share.
• Buyback Yield reflects the decrease in shares outstanding, showing how much a company is investing in repurchasing its shares.
• Debt Paydown Yield measures the reduction of debt in relation to the company’s market capitalization, highlighting efforts to reduce financial liabilities.
Implications for Investors
High Shareholder Yield is often associated with superior long-term performance in the stock market, making it a crucial measure for investors seeking stocks that consistently deliver high returns through dividends, buybacks, and effective debt management. This metric highlights the importance of looking beyond traditional dividend yields to consider how companies return capital to shareholders in other ways, enhancing overall investment analysis.
Tata Steel is forecast to grow earnings and revenue by 69.4% and 6% per annum respectively. EPS is expected to grow by 69.1% per annum. Return on equity is forecast to be 16% in 3 years.
Tata Steel reported a 64 percent fall in fourth quarter profit at Rs 611.48 crore for the quarter ended March FY24. Amid concerns over global economic uncertainty, operational aspects, and rising steel imports from China, analysts slashed their ratings and target prices for Tata Steel.
The intrinsic value of one TATASTEEL stock under the Base Case scenario is 194.51 INR. Compared to the current market price of 153.49 INR, Tata Steel Ltd is Undervalued by 21%.
Earlier, Tata Steel turned ex-dividend on June 21, which was also the record date for the final dividend of Rs 3.60 per share for FY24, the same as the payout in FY23. The dividend payment date was fixed on and from July 19, 2024.
Tata Steel announced merger with several subsidiaries in September last year to drive efficiency and growth. Tata Steel has announced successful amalgamation with 5 businesses today.
Tata Steel Ltd. has an average target of 173.83. The consensus estimate represents an upside of 12.72% from the last price of 154.21. View 21 reports from 7 analysts offering long-term price targets for Tata Steel Ltd..
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Tata Steel Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Previously, Tata Steel had become the most profitable company in the group during the global boom in steel prices in late 2021. The steelmaker reported higher net profit than TCS' in three of four quarters in FY22 and it posted a record annual net profit of Rs 40,238 crore in FY22 against TCS' Rs 38,327 crore.
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