JMP Group LLC : JMP-US: Dividend Analysis : November 30th, 2017 (record date) : By the numbers : November 30, 2017

Our analysis is based on comparing JMP Group LLC with the following peers – Piper Jaffray Companies, Oppenheimer Holdings Inc. Class A, Ladenburg Thalmann Financial Services Inc., Evercore Inc Class A, Cowen Inc Class A and Astec Industries, Inc. (PJC-US, OPY-US, LTS-US, EVR-US, COWN-US and ASTE-US).

JMP Group LLC’s dividend yield is 6.78 percent and its dividend payout is -57.14 percent. This compares to a peer median dividend yield of 1.60 percent and a payout level of -13.27 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking seeking good current dividend income within this peer group. In addition, the company’s relatively good dividend quality score of 92 out of a possible score of 100, underscores its attractiveness for dividend investors.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), JMP-US paid a high quality dividend, which represents a yield of 6.78% at the current price.
  • 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 and 3 were medium quality.
  • The ending cash balance, with a dividend coverage of 18.77x, 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 September 30, 2017), JMP-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 -1.08x), investing cash flow (coverage of 10.25x), issuance cash flow (coverage of -16.11x) and twelve-month prior cash (coverage of 26.71x), for a total dividend coverage of 19.77x.

JMP-US’s issuance cash flow includes outflows from net share buybacks (coverage of -0.33x). Thus, the total coverage including share buybacks is 20.10x, 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 (%) 2.24 2.06 3.19 8.76 6.35 6.78
Dividend Payout (%) 112.5 90.63 39.47 -4560 300 -57.14

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

Company Profile

JMP Group LLC provides investment banking, sales and trading, and equity research services to corporate and institutional clients, and alternative asset management products and services to institutional investors and high net-worth individuals. It operates through three segments: Broker-Dealer, Asset Management and Corporate. The Broker-Dealer segment includes a broad range of services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions and financial advisory services in M&A, restructuring and other strategic transactions. It also includes institutional brokerage services and equity research services to its institutional investor clients. The Asset Management segment includes the management of a broad range of pooled investment vehicles, including the company’s hedge funds, hedge funds of funds, and collateralized loan obligations. The Corporate segment includes income from the company’s principal investments in public and private securities and investment funds managed by HCS, as well as any other net interest and income from investing activities. The company was founded by Joseph A. Jolson and Carter D. Mack in August 2014 and is headquartered in San Francisco, CA.

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