Current Analysis: Traton SE

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Traton SE (TRATF) is a commercial vehicle manufacturer. The group's product portfolio comprises trucks, buses, and light-duty commercial vehicles.

Transforming Transportation Together; For a sustainable world, this intention underlines the company's ambition to have a lasting and sustainable impact on the commercial vehicle business and the group's commercial growth.

The company offers its products and services under the MAN, Scania, Navistar, and Volkswagen Truck & Bus brands. In addition, it provides customers with financing solutions, such as loans and leases.

The company was founded in 2015 and is headquartered in Munich, Germany. Traton SE is a subsidiary of Volkswagen Finance Luxemburg S.A.

Three key data points gauge Traton SE or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

TRATF Price

Over the past year, Traton share price soared about 58% from $22.24 to $35.12 as of Tuesday’s market close.

If Traton shares trade in the range of $18 to $45.00 this next year, its recent $35.12 share price might rise to $41.00 by next year. Of course, Tratons price could drop about the same $5.88 estimated amount or more.

My annual upside estimate of $5.88 however, is less than half the average TRATF price gain over the past year.
 

TRATF Dividend

Traton SE  has paid variable annual dividends for four years,  TRATF’s most recent A dividend of $1.63 was declared February 19th  for shareholders of record June 14th to be paid June 18th. You have a couple of weeks to get into this trade and called this year’s dividend.

A forward looking $1.63 annual dividend yields 4.65% at Wednesday’s $35.12 share price.
 

TRATF Returns

To put it all together, add the Traton projected annual dividend of $1.63 to the estimated price upside of $5.88 to get a $7.51 estimated gross gain for the coming year.

At Wednesday’s $35.12 share price, a little over $1000 would buy 28 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.36 per share.

Subtracting that unlikely $0.36 brokerage cost from the $5.51 estimated gross gain reveals a net gain of $5.15 X 28 shares = $144.20 for about a 14% estimated net gain on the year.

You might choose to pounce on Traton SE It is a 9 year-old dividend paying Luxumborg-based commercial vehicle manufacturer\ that has a four year track record paying dividends. Furthermore, the $46.50 estimated dividend income from $1k invested is 1.3 times greater than Traton’s recent $35.12 share price.

The exact track of Traton’s upcoming future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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