Mexichem SAB de CV : MXCHY-US: Dividend Analysis : November 25th, 2016 (record date) : By the numbers : January 23, 2017

Our analysis is based on comparing Mexichem SAB de CV with the following peers – E. I. du Pont de Nemours and Company, Westlake Chemical Corporation, Braskem S.A. Sponsored ADR Pfd Class A and Occidental Petroleum Corporation (DD-US, WLK-US, BAK-US and OXY-US).

Mexichem SAB de CV’s dividend yield is 1.00 percent and its dividend payout is 958.94 percent. This compares to a peer average dividend yield of 2.08 percent and a payout level of 67.10 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. The contra-indicator here is the relatively strong dividend quality score of 83 out of a possible score of 100, which points to some ability to sustain the higher payout ratio.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2016), MXCHY-US paid a high quality dividend, which represents a yield of 1.05% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 1 was high quality, 2 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 11.24x, 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, 2016), MXCHY-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 13.64x), investing cash flow (coverage of -10.08x), issuance cash flow (coverage of -0.78x) and twelve-month prior cash (coverage of 9.26x), for a total dividend coverage of 12.24x.

MXCHY-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.11x). Thus, the total coverage including share buybacks is 12.35x, 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 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31 Latest
Dividend Yield (%) 0.72 1.29 1.82 0 1.36 1
Dividend Payout (%) 7.72 12.99 343.89 0 40.63 958.94

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

Company Profile

Mexichem SAB de CV is engaged in the manufacture and sale of petrochemical products. It operates through the following segments: Chlorine-Vinyl, Fluorine, and Integral Solutions. The Chlorine-Vinyl segment comprises of chlorine, caustic soda, chlorinated derivatives, and polyvinyl chloride (PVC) resins and compounds. The Fluorine segment exploits fluorite, and produces hydrofluoric acid and cooling gases. The Integral Solutions segment includes pipes and fittings of PVC, polyethylene and polypropylene, and geo-synthetic tubes and connectors. The company was founded on June 30, 1978 and is headquartered in Tlalnepantla, Mexico.


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