Definitive Analysis
Definitive Analysis

Financial Statements

Analysis Mode

Ticker

Industry

Sector

Ho Tung Chemical Corp. (1714.TW)

Company Dividend Discount ModelIndustry: ChemicalsSector: Basic Materials

Valuation Snapshot

Stable Growth$3.98 - $6.17$4.99
Multi-Stage$9.19 - $10.12$9.65
Blended Fair Value$7.32
Current Price$7.94
Upside-7.79%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.64%0.00%0.300.100.420.710.000.150.310.000.000.00
YoY Growth--200.00%-76.20%-39.96%0.00%-100.00%-50.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.59%1.15%4.72%6.75%0.00%2.50%4.57%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)423.53
(-) Cash Dividends Paid (M)201.29
(=) Cash Retained (M)222.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)84.7152.9431.76
Cash Retained (M)222.25222.25222.25
(-) Cash Required (M)-84.71-52.94-31.76
(=) Excess Retained (M)137.54169.30190.48
(/) Shares Outstanding (M)998.45998.45998.45
(=) Excess Retained per Share0.140.170.19
LTM Dividend per Share0.200.200.20
(+) Excess Retained per Share0.140.170.19
(=) Adjusted Dividend0.340.370.39
WACC / Discount Rate6.36%6.36%6.36%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3.98$4.99$6.17
Upside / Downside-49.88%-37.09%-22.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)423.53419.30415.10410.95406.84402.77414.86
Payout Ratio47.53%56.02%64.52%73.01%81.51%90.00%92.50%
Projected Dividends (M)201.29234.89267.81300.04331.60362.50383.74

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.36%6.36%6.36%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)218.62220.85223.08
Year 2 PV (M)231.99236.75241.56
Year 3 PV (M)241.91249.39257.02
Year 4 PV (M)248.84259.15269.78
Year 5 PV (M)253.18266.37280.09
PV of Terminal Value (M)7,984.288,400.048,832.94
Equity Value (M)9,178.829,632.5510,104.48
Shares Outstanding (M)998.45998.45998.45
Fair Value$9.19$9.65$10.12
Upside / Downside15.78%21.50%27.46%

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