CrossAmerica Partners LP to Issue Quarterly Dividend of $0.53 (NYSE:CAPL)

Key Points

• CrossAmerica declared a quarterly dividend of $0.525 per share (annualized $2.10) with an ex-dividend/record date of May 4 and a stated yield of about 10.0%, payable May 14.
• The dividend appears unsustainable: CrossAmerica’s payout ratio is ~411.8%, meaning it cannot cover payouts with current earnings and is relying on the balance sheet; analysts project next-year EPS that would still imply a payout ratio near 295.8%.
• The company posted a recent quarterly EPS beat ($0.16 vs. $0.05) and $2.69B in revenue, but profitability metrics are weak (negative ROE of 9.43% and a net margin of 1.14%) and the market cap is about $801M.

CrossAmerica Partners LP (NYSE:CAPL - Get Free Report) announced a quarterly dividend on Wednesday, April 22nd. Shareholders of record on Monday, May 4th will be paid a dividend of 0.525 per share by the oil and gas company on Thursday, May 14th. This represents a c) annualized dividend and a dividend yield of 10.0%. The ex-dividend date is Monday, May 4th.

CrossAmerica Partners has a dividend payout ratio of 411.8% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect CrossAmerica Partners to earn $0.71 per share next year, which means the company may not be able to cover its $2.10 annual dividend with an expected future payout ratio of 295.8%.

CrossAmerica Partners Price Performance

NYSE CAPL opened at $21.01 on Thursday. CrossAmerica Partners has a one year low of $19.61 and a one year high of $24.53. The firm has a market cap of $801.11 million, a P/E ratio of 20.40 and a beta of 0.35. The stock's 50-day moving average is $21.44 and its 200-day moving average is $21.13.

CrossAmerica Partners (NYSE:CAPL - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The oil and gas company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.11. CrossAmerica Partners had a negative return on equity of 9.43% and a net margin of 1.14%.The business had revenue of $2.69 billion during the quarter, compared to analyst estimates of $748.01 million. Equities analysts anticipate that CrossAmerica Partners will post 0.43 EPS for the current year.

CrossAmerica Partners Company Profile

CrossAmerica Partners LP NYSE: CAPL is a publicly traded master limited partnership engaged in the wholesale distribution of motor fuels across the United States. The company procures, transports and stores refined petroleum products including gasoline, diesel fuel, kerosene, heating oil and select renewable fuel blends. Through its integrated network of pipelines, terminals and truck fleets, CrossAmerica Partners supplies fuel to a broad base of customers, including convenience stores, supermarket chains, travel centers and independent marketers.

Formed in 2014 as a spin-off of Sunoco's wholesale fuel business, CrossAmerica Partners acquired refined petroleum distribution assets and entered into long-term supply agreements designed to deliver stable, fee-based revenues.

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