Our analysis is based on comparing Hengan International Group Co., Ltd. with the following peers – Kimberly-Clark Corporation, Unicharm Corporation, Procter & Gamble Company, Svenska Cellulosa Aktiebolaget Sponsored ADR Class B, Kimberly-Clark de Mexico SAB de CV Sponsored ADR, Vinda International Holdings Limited Unsponsored ADR and Clearwater Paper Corporation (KMB-US, UNCHF-US, PG-US, SVCBY-US, KCDMY-US, VDAHY-US and CLW-US).
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, 3 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 7.99x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to June 30, 2017), HEGIY-US paid a medium 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 1.71x), investing cash flow (coverage of -3.25x), issuance cash flow (coverage of 3.30x) and twelve-month prior cash (coverage of 4.88x), for a total dividend coverage of 8.99x.
HEGIY-US’s issuance cash flow includes outflows from net share buybacks (coverage of -0.19x). Thus, the total coverage including share buybacks is 9.18x, 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 net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||2.14||1.96||2.29||2.86||3.74||2.98|
|Dividend Payout (%)||52.39||59.57||58||63.98||63.29||62.63|
A complete list of metrics and analysis is available on the company page.
Hengan International Group Co., Ltd. operates as an investment holding company, which engages in the trading of personal hygienic products. The company through its subsidiaries engages in the activities of manufacturing, distributing, and selling of personal hygie, food and snack, and skin care products in China. It operates through five business segments: Tissue Paper Products, Sanitary Napkins Products, Disposable Diapers Products, Food and Snacks Products, and Skin Care Products and Others. The company was founded in 1985 and is headquartered in Jinjiang, China.
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