Our analysis is based on comparing Tredegar Corp. with the following peers – Raven Industries, Inc., Core Molding Technologies, Inc., Fuwei Films (Holdings) Co., Ltd., Mueller Industries, Inc. and Berry Global Group Inc (RAVN-US, CMT-US, FFHL-US, MLI-US and BERY-US).
Tredegar Corp.’s dividend yield is 2.26 percent and its dividend payout is 25.14 percent. This compares to a peer median dividend yield of 1.90 percent and a payout level of 24.41 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), TG-US paid a medium quality dividend, which represents a yield of 2.26% 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 1 was high quality, 1 was medium quality and 3 were low quality.
- The ending cash balance, with a dividend coverage of 2.19x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), TG-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 4.68x), investing cash flow (coverage of -9.41x), issuance cash flow (coverage of 5.93x) and twelve-month prior cash (coverage of 1.95x), for a total dividend coverage of 3.19x.
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 (%)||4.7||0.97||1.51||3.08||1.83||2.26|
|Dividend Payout (%)||23.86||41.79||30.09||-42.42||58.67||25.14|
A complete list of metrics and analysis is available on the company page.
Tredegar Corp. engages in the manufacture of polyethylene plastic films, polyester films, and aluminum extrusions. The company operates through following business segments: PE Films, Flexible Packaging Films, and Aluminum Extrusions. The PE Films segment manufactures plastic films, elastics, and laminate materials utilized in personal care materials, surface protection films and specialty and optical lighting applications. The Flexible Packaging Films segment produces polyester-based films used in packaging applications. The Aluminum Extrusions segment manufactures mill, anodized, painted, and fabricated aluminum extrusions for sale directly to fabricators and distributors. The company was founded in 1988 and is headquartered in Richmond, VA.
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