Cementos Pacasmayo SAA : CPAC-US: Dividend Analysis : March 01st, 2017 (record date) : By the numbers : June 19, 2017

Our analysis is based on comparing Cementos Pacasmayo SAA with the following peers – Eagle Materials Inc., Buzzi Unicem SpA Unsponsored ADR, Cemex SAB de CV Sponsored ADR, CRH Plc Sponsored ADR, Taiheiyo Cement Corporation Unsponsored ADR, Cementos Bio Bio S.A. and Cemento Polpaico S.A. (EXP-US, BZZUY-US, CX-US, CRH-US, THYCY-US, CEMENTOS-CL and POLPAICO-CL).

Cementos Pacasmayo SAA’s dividend yield is 9.16 percent and its dividend payout is 97.43 percent. This compares to a peer median dividend yield of 1.32 percent and a payout level of 30.50 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality and 4 were low quality.
  • The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to March 31, 2017), CPAC-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.68x), investing cash flow (coverage of -0.64x), issuance cash flow (coverage of -0.41x) and twelve-month prior cash (coverage of 0.73x), for a total dividend coverage of 1.12x.

CPAC-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.23x). Thus, the total coverage including share buybacks is 1.35x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 1.74 2.13 5.5 7.82 5.86 9.16
Dividend Payout (%) 32.71 37.33 60.07 75.24 125.77 138.14

A complete list of metrics and analysis is available on the company page.

Company Profile

Cementos Pacasmayo SAA engages in the production and marketing of cement, quicklime, aggregates, ready-mix concrete, precast concrete products and other construction materials. It operates through the following segments: Cement, Concrete, and Blocks; Quicklime; and Sales of Construction Supplies. The company was founded in 1949 and is headquartered at Lima, Peru.


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