MTS Systems Corp. : MTSC-US: Dividend Analysis : December 18th, 2017 (record date) : By the numbers : December 18, 2017

Our analysis is based on comparing MTS Systems Corp. with the following peers – FARO Technologies, Inc., Geospace Technologies Corporation, Illinois Tool Works Inc., Moog Inc. Class A, Perceptron, Inc. and General Electric Company (FARO-US, GEOS-US, ITW-US, MOG.A-US, PRCP-US and GE-US).

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), MTSC-US paid a high quality dividend, which represents a yield of 2.20% 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 3 were high quality, 1 was medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 5.42x, 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), MTSC-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 3.57x), investing cash flow (coverage of -0.93x), issuance cash flow (coverage of -0.52x) and twelve-month prior cash (coverage of 4.22x), for a total dividend coverage of 6.42x.

MTSC-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.72x).

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 2013-09-30 2014-09-30 2015-09-30 2016-09-30 2017-09-30 Latest
Dividend Yield (%) 1.95 1.76 2.6 1.82 2.12 2.75
Dividend Payout (%) 32.97 43.96 40 70.59 91.6 91.6

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

Company Profile

MTS Systems Corp. is a global supplier of test systems and sensors. It provides hardware and software solutions to accelerate and improve the design, development and manufacturing processes, which are used for determining the mechanical behavior of materials, products and structures. The company operates through two segments: Test and Sensors. The Test segment provides testing solutions, including hardware, software and service. Its testing solutions are used by customers in the development of products to characterize the product’s mechanical properties. The Sensors segment offers sensing technologies and solutions used by design engineers and predictive maintenance professional’s worldwide, serving customers with a focus on total customer satisfaction, offering regional support to provide innovative and reliable sensing solutions. It provides high performance sensors used for acceleration, position, vibration, motion, pressure and force measurement. MTS Systems was founded in 1966 and is headquartered in Eden Prairie, MN.

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