Unpacking CHSYF's Dividend History, Yield, Growth, and Sustainability
China Medical System Holdings Ltd (CHSYF, Financial) recently announced a dividend of $0.34 per share, payable on 2023-09-20, with the ex-dividend date set for 2023-09-11. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into China Medical System Holdings Ltd's dividend performance and assess its sustainability.
What Does China Medical System Holdings Ltd Do?
China Medical System Holdings Ltd is active in the healthcare segment. It is one of the leading China-based pharmaceutical services companies in the country. The company's business mainly involves the marketing, promotion, and sales of prescription pharmaceutical products manufactured by domestic pharmaceutical companies. Some of its products include Plendil; Salofalk; Combizym; Ganfule Capsules; Xidakang; Hirudoid; and others. Geographically, it derives revenue from China.
A Glimpse at China Medical System Holdings Ltd's Dividend History
China Medical System Holdings Ltd has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down China Medical System Holdings Ltd's Dividend Yield and Growth
As of today, China Medical System Holdings Ltd currently has a 12-month trailing dividend yield of 5.13% and a 12-month forward dividend yield of 5.18%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, China Medical System Holdings Ltd's annual dividend growth rate was 16.80%. Extended to a five-year horizon, this rate decreased to 16.20% per year. And over the past decade, China Medical System Holdings Ltd's annual dividends per share growth rate stands at an impressive 20.10%.
Based on China Medical System Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of China Medical System Holdings Ltd stock as of today is approximately 10.87%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, China Medical System Holdings Ltd's dividend payout ratio is 0.39.
China Medical System Holdings Ltd's profitability rank, as of 2023-06-30, suggests good profitability prospects. The company has reported positive net income for each of the years over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. China Medical System Holdings Ltd's growth rank of 10 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and China Medical System Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. China Medical System Holdings Ltd's revenue has increased by approximately 15.20% per year on average, a rate that outperforms than approximately 77.24% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, China Medical System Holdings Ltd's earnings increased by approximately 19.00% per year on average, a rate that outperforms than approximately 59.61% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 15.80%, outperforms than approximately 64.59% of global competitors.
Next Steps
Given China Medical System Holdings Ltd's consistent dividend payments, impressive dividend growth rate, reasonable payout ratio, high profitability, and strong growth metrics, the company appears well-positioned to sustain its dividends in the foreseeable future. This analysis should provide value investors with a comprehensive overview of the company's dividend performance and prospects. As always, investors are encouraged to conduct their own due diligence before making any investment decisions.
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