CIMIC Group Ltd. : LGTHY-US: Dividend Analysis : September 13th, 2017 (record date) : By the numbers : October 6, 2017

Our analysis is based on comparing CIMIC Group Ltd. with the following peers – Monadelphous Group Limited Unsponsored ADR, Downer EDI Limited Unsponsored ADR and BHP Billiton Limited Sponsored ADR (MOPHY-US, DNERY-US and BHP-US).

CIMIC Group Ltd.’s dividend yield is 2.74 percent and its dividend payout is 55.97 percent. This compares to a peer average dividend yield of 3.18 percent and a payout level of 75.17 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 83 out of a possible score of 100 looks sustainable.

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 2 were high quality, 2 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 10.74x, provides a substantial cushion in case of a 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 June 30, 2017), LGTHY-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 9.92x), investing cash flow (coverage of -3.43x), issuance cash flow (coverage of -5.33x) and twelve-month prior cash (coverage of 10.25x), for a total dividend coverage of 11.74x.

LGTHY-US’s issuance cash flow includes outflows from net debt repayment (coverage of -2.38x) and net share buybacks (coverage of -1.13x). Thus, the total coverage including share buybacks is 12.87x, 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 (%) 4.47 7.03 5.72 4.84 2.9 2.74
Dividend Payout (%) 59.9 132.77 -344.3 74.15 55.23 25.09

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

Company Profile

CIMIC Group Ltd. operates in the infrastructure, resources, and property markets. The company also engages in other services such as environmental, telecommunications, and operations and maintenance. It operates through the following segments: Construction, Contract Mining, Public Private Partnerships, Engineering, Habtoor Leighton Group, Commercial and Residential, and Corporate. The company was founded by Stanley Ellis Leighton in 1949 and is headquartered in Sydney, Australia.


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