Multi-Color Corp. : LABL-US: Dividend Analysis : August 15th, 2016 (record date) : By the numbers : October 18, 2016

Our analysis is based on comparing Multi-Color Corp. with the following peers – InnerWorkings, Inc., R.R. Donnelley & Sons Company, Cimpress N.V., Cenveo, Inc. and Brady Corporation Class A (INWK-US, RRD-US, CMPR-US, CVO-US and BRC-US).

Multi-Color Corp.’s dividend yield is 0.31 percent and its dividend payout is 6.73 percent. This compares to a peer average dividend yield of 2.39 percent and a payout level of 29.03 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2016), LABL-US paid a low quality dividend, which represents a yield of 0.31% 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, 1 was medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 7.35x, 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 June 30, 2016), LABL-US paid a low 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 24.48x), investing cash flow (coverage of -23.81x), issuance cash flow (coverage of -0.17x) and twelve-month prior cash (coverage of 8.17x), for a total dividend coverage of 8.35x.

LABL-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.75x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-03-31 2013-03-31 2014-03-31 2015-03-31 2016-03-31 Latest
Dividend Yield (%) 0.81 0.78 0.57 0.29 0.37 0.31
Dividend Payout (%) 15.15 10.75 11.76 7.38 7.09 6.73

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

Company Profile

Multi-Color Corp. engages in the provision of label solutions supporting various industries such as home and personal care, wine and spirit, food and beverage, healthcare and specialty consumer products. It offers pressure sensitive labels, in-mold labels, heat transfer labels, glue-applied labels, shrink sleeve labels, and graphic services. The company was founded in 1916 and is headquartered in Batavia, OH.

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