Analyzing SHOE CARNIVAL INC (NASDAQ:SCVL)'s Dividend Potential.

Take a closer look at SHOE CARNIVAL INC (NASDAQ:SCVL), a stock of interest to dividend investors uncovered by our stock screener. SCVL excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend Metrics for SCVL

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. SCVL has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.81, SCVL pays a better dividend. On top of this SCVL pays more dividend than 85.25% of the companies listed in the same industry.
• On average, the dividend of SCVL grows each year by 24.73%, which is quite nice.
• SCVL has been paying a dividend for at least 10 years, so it has a reliable track record.
• SCVL has not decreased their dividend for at least 10 years, which is a reliable track record.
• SCVL pays out 19.20% of its income as dividend. This is a sustainable payout ratio.

How We Gauge Health for SCVL

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. SCVL has achieved a 6 out of 10:

• There is no outstanding debt for SCVL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 3.88 indicates that SCVL has no problem at all paying its short term obligations.
• SCVL's Current ratio of 3.88 is amongst the best of the industry. SCVL outperforms 95.08% of its industry peers.
• SCVL has a Quick ratio of 0.89. This is in the better half of the industry: SCVL outperforms 69.67% of its industry peers.

Profitability Examination for SCVL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For SCVL, the assigned 7 is a significant indicator of profitability:

• SCVL has a better Return On Assets (6.64%) than 76.23% of its industry peers.
• SCVL's Return On Equity of 11.74% is fine compared to the rest of the industry. SCVL outperforms 68.03% of its industry peers.
• The Return On Invested Capital of SCVL (7.43%) is better than 65.57% of its industry peers.
• The last Return On Invested Capital (7.43%) for SCVL is well below the 3 year average (14.99%), which needs to be investigated, but indicates that SCVL had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 6.12%, SCVL belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
• In the last couple of years the Profit Margin of SCVL has grown nicely.
• SCVL's Operating Margin of 7.97% is fine compared to the rest of the industry. SCVL outperforms 77.87% of its industry peers.
• In the last couple of years the Operating Margin of SCVL has grown nicely.
• SCVL's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of SCVL

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.