Dividend and Company Essay examples

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To analysis the market performance of Photo-Me, this sector analysis the main investor ratios of the company for 2014 and 2013 and compare to the company Fujifilm and Panasonic. The Fujifilm is company provide photo service and the Panasonic both provide photo service and is also the manufacture of laundry machine.
Share price
Year
Photo-Me
Fujifilm
Panasonic
2014 April 30
135.0p
2640.0 yen
1223yen
2013 April 30
77.78p
1998.0 yen
610yen
Share prices can be affected by a wide variety of issues but the two main factors are the performance of the company and the wider environment. The share price of the Photo-Me increased 73.6% from 2013 to 2014 which is higher than Fujifilm which increased 32% and lower than Panasonic (100.5%).

Return on equity (ROE)
Year
Photo-Me (April 30)
Fujifilm (March 31)
Panasonic(March 31)
2014
20.7%
4.2%
8.6%
2013
17.85%
3.0%
-47.2%
The ROE ratio of Photo-Me has been increased from 17.85% to 20.7%. The company earned much profit compare to other competitors. It is much higher than the company of Fujifilm and Panasonic.

Price/earnings ratio (PE ratio)
Year
Photo-Me (April 30)
Fujifilm (March 31)
Panasonic(March 31)
2014
23.68
16.49
52
2013
16.34
16.32
-326.28
The PE ratio of Photo-Me in 2014 is23.68 and 2013 is 16.34.The PE ratio is the indicator of market confidence for a company. The increase of the P/E ratio tends to indicate that the market price of the share is rising more quickly than earnings. The increase of PE ration reflect that the increase of market price but the profit of the company has decreased. This suggest that the investor of the company generate more profit. The PE ratios is higher than Fujifilm but lower than Panasonic.

Dividend per share
Year
Photo-Me (April 30)
Fujifilm (March 31)
Panasonic(March 31)
2014
3.00p
71.0yen
13yen
2013
5.38p
7.81yen
0yen

2014: = 3.00p 2013: =5.38p
Dividends are a form of profit distribution to the shareholder. The ratio shows the total dividend of the company has been decreased and the total share has been increased. The decrease of total dividend may due to the company put more capital in the future development. The dividend per share of Photo-Me is much lower than other two competitors.

Dividend cover
Year
Photo-Me (April 30)
Fujifilm (March 31)
Panasonic(March 31)
2014
1.94 times
1.36 times
-34.11times
2013
0.88 times
0.94 times
4.83times

2014: = 2013:=
The greater the cover the more secure the dividend and the more likely the shareholders are to receive their dividend whilst leaving substantial funds to be retained in the business for expansion or consolidation. The profit of the company has increased and the dividend is decreased. The ratio indicates the capacity of an organization to pay dividends out of profit attributable to the share holders. Generally, companies would aim to sustain a dividend cover of at least 2 times in order to avail adequate financing through retained earnings while providing a reasonable cash return on shareholder's investment. The 2013 dividend cover suggest that the company might not be able to maintain the present level of dividends in case of adverse variation in profit in the future. It is better than other two competitors.

Dividend yield

Year
Photo-Me (April 30)
Fujifilm (March 31)
Panasonic(March 31)
2014
2.2%
2.6%
1.1%
2013
6.9%
0.4%
0%

2014:=2.2% 2013:=6.9%
The ratio shows how much a company pays out in dividends each year relative to its share price. The price of share has increased but the dividend per share has decreased which suggest investor have pay more money and gain less profit. The dividend yield is lower than Fujifilm but higher than Panasonic.

Total shareholder returns
Year
Photo-Me (April 30)
Fujifilm (March 31)
Panasonic(March 31)
2014
77.46%
54.54%
102.62%
2013
83.33%
-4.86%
-18.77%

2014: ==77.46% 2013:==83.33%
The total
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