Definitive Analysis
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Somnigroup International Inc (SGI)

Company Dividend Discount ModelIndustry: Household & Personal ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$11.10 - $15.97$13.48
Multi-Stage$18.20 - $19.98$19.07
Blended Fair Value$16.28
Current Price$84.33
Upside-80.70%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020162015201420132012
DPS0.00%0.00%0.460.390.350.310.000.000.000.000.000.00
YoY Growth--19.31%10.21%11.73%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.77%0.70%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)315.20
(-) Cash Dividends Paid (M)118.50
(=) Cash Retained (M)196.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)63.0439.4023.64
Cash Retained (M)196.70196.70196.70
(-) Cash Required (M)-63.04-39.40-23.64
(=) Excess Retained (M)133.66157.30173.06
(/) Shares Outstanding (M)200.63200.63200.63
(=) Excess Retained per Share0.670.780.86
LTM Dividend per Share0.590.590.59
(+) Excess Retained per Share0.670.780.86
(=) Adjusted Dividend1.261.371.45
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$11.10$13.48$15.97
Upside / Downside-86.84%-84.02%-81.06%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)315.20312.05308.93305.84302.78299.75308.74
Payout Ratio37.60%48.08%58.56%69.04%79.52%90.00%92.50%
Projected Dividends (M)118.50150.02180.90211.14240.77269.78285.59

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)136.12137.51138.90
Year 2 PV (M)148.93151.99155.07
Year 3 PV (M)157.73162.60167.58
Year 4 PV (M)163.19169.95176.93
Year 5 PV (M)165.91174.55183.55
PV of Terminal Value (M)2,880.213,030.193,186.35
Equity Value (M)3,652.093,826.794,008.38
Shares Outstanding (M)200.63200.63200.63
Fair Value$18.20$19.07$19.98
Upside / Downside-78.41%-77.38%-76.31%

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