Haier Electronics Group Co., Ltd. : HRELY-US: Dividend Analysis : June 23rd, 2017 (record date) : By the numbers : June 21, 2017

Our analysis is based on comparing Haier Electronics Group Co., Ltd. with the following peers – Whirlpool Corporation, Sony Corporation Sponsored ADR, Appliance Recycling Centers of America, Inc., Panasonic Corporation and Whirlpool SA Pfd (WHR-US, SNE-US, ARCI-US, PCRFF-US and WHRL4-BR).

Haier Electronics Group Co., Ltd.’s dividend yield is 0.52 percent and its dividend payout is 12.93 percent. This compares to a peer average dividend yield of 0.73 percent and a payout level of 31.50 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 4 of these years — of these 3 were high quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 43.47x, 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 December 31, 2016), HRELY-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 12.63x), investing cash flow (coverage of -3.28x), issuance cash flow (coverage of -0.34x) and twelve-month prior cash (coverage of 37.31x), for a total dividend coverage of 44.47x.

HRELY-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.08x) and net share buybacks (coverage of -0.09x). Thus, the total coverage including share buybacks is 44.57x, 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 (%) 0.01 0 0.54 0.71 0.99 0.52
Dividend Payout (%) 0.14 0 8.72 9.35 10.36 10.39

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

Company Profile

Haier Electronics Group Co., Ltd. is a home appliance manufacturer company, which engages in the research, development, production, and sale of washing machines and water heaters. It also engages in the integrated channel services business for other home appliance products, such as refrigerators, televisions and air-conditioners of both Haier and non-Haier brands. It operates through the following segments: Washing Machine, Water Heater, and Integrated Channel Services. The Washing Machine segment manufactures and sells top load, front load, agitator and dual-drive washing machines. The Water Heater segment manufactures and sells various types of water heaters, including electric, gas, solar and gas boilers in the mechanical, electric and network-based categories. The Integrated Channel Services segment provides logistics, after-sale and other value-added consumer services, as well as sells and distributes home appliances and other products procured from Haier affiliates and other external parties. Its brands include Casarte, Haier and Leader. The company was founded on September 23, 1997 and is headquartered in Hong Kong.


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