Our analysis is based on comparing FirstCash, Inc. with the following peers – EZCORP, Inc. Class A, Winmark Corporation, Visa Inc. Class A and Input Capital Corp. (EZPW-US, WINA-US, V-US and INPCF-US).
FirstCash, Inc.’s dividend yield is 1.22 percent and its dividend payout is 32.48 percent. This compares to a peer median dividend yield of 0.91 percent and a payout level of 15.80 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 75 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), FCFS-US paid a high quality dividend, which represents a yield of 1.20% at the current price.
- Only one dividend was paid over the last five years — it was also of high quality.
- The ending cash balance, with a dividend coverage of 2.55x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), FCFS-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 5.60x), investing cash flow (coverage of 1.11x), issuance cash flow (coverage of -5.49x) and twelve-month prior cash (coverage of 2.28x), for a total dividend coverage of 3.55x.
FCFS-US’s issuance cash flow includes outflows from net debt repayment (coverage of -3.72x) and net share buybacks (coverage of -1.77x). Thus, the total coverage including share buybacks is 5.32x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
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 Yield (%)||0||0||0||0||0.87||1.22|
|Dividend Payout (%)||0||0||0||0||32.85||32.48|
A complete list of metrics and analysis is available on the company page.
FirstCash, Inc. operates retail-based pawn stores. The company operates through following segments: U.S. operations and Latin America operations. The U. S. Operations segment includes all pawn and consumer loan operations in the U. S. The Latin America Operations segment includes all pawn and consumer loan operations in Latin America, which currently includes operations in Mexico, Guatemala and El Salvador. It buys and sells jewelry, consumer electronics, power tools, household appliances, sporting goods, musical instruments and other merchandise, and make small consumer pawn loans secured by pledged personal property. The company was founded in July 1988 and is headquartered in Arlington, TX.
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