09-26-2019, 03:13 AM
(09-25-2019, 02:22 PM)crimsonghost747 Wrote:(09-25-2019, 01:47 PM)Binary Wrote:(09-25-2019, 01:07 PM)crimsonghost747 Wrote: The bigger issue than div to EPS is the cash flow payout ratio. Last I checked it was significantly over 100%, maybe around 125%, for the first half of this year. That is obviously not sustainable, and while for a short term it will be ok, they have to turn it around sooner rather than later. I wouldn't be surprised to see a large dividend cut coming in the next few years. (and I do not consider that a bad thing, sometimes the company needs to focus on things other than the dividend)
Might that payout be because of the Juul acquisition?
No. This is cash from operating activities compared with cash used in payment of dividend.
Acquisitions are not part of operating activities, instead they are reported under cash from investing activities.
So I'm looking at Morningstar. TTM numbers say free cash flow is 6.688B USD, dividend was 5.831B USD. That is an 87% payout ratio, quite normal for this company as I see it.