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Bemis Company, Inc. (BMS) Dividend Stock Analysis

 November 23, 2011 09:58 AM
 


Linked here is a detailed quantitative analysis of Bemis Company, Inc. (BMS). Below are some highlights from the above linked analysis:
Company Description: Bemis Company Inc. is a leading maker of a broad range of flexible packaging and pressure-sensitive materials.

Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:

1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number

BMS is trading at a discount to only 3.) above. The stock is trading at a 30.1% premium to its calculated fair value of $21.51. BMS did not earn any Stars in this section.

Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:

1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%

BMS earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. BMS earned a Star for having an acceptable score in at least two of the four Key Metrics measured. The company has paid a cash dividend to shareholders every year since 1922 and has increased its dividend payments for 28 consecutive years.

Dividend Income vs.


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