At a backdrop of lower revenue and lower profit after tax, The Hour Glass has proposed a first and final dividend of 2 cents. At current closing price of S$0.66, this translates to a
dividend yield of 3.03%. I am not surprise by the financial results but I was surprised by how well The Hour Glass manages the economic downturn.
We all know that The Hour Glass deals with luxury watches and given the current economic headwinds, the company should do very badly. But it didn’t.
The management reduced the company’s debt to equity ratio from 14.4 percent to 10.7 percent.
|
FY2017 |
FY2016 |
FY2015 |
FY2014 |
FY2013 |
| Debt/equity ratio (%) |
10.7 |
14.4 |
15.0 |
10.9 |
12.5 |
The company’s free cash flow is still positive with hoards of cash. The Hour Glass has a
free cash flow of 57 million.
|
FY2017 |
FY2016 |
FY2015 |
FY2014 |
... |
...
