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Yuen Chang Stainless Steel Co., Ltd. (2069.TW)

Company Dividend Discount ModelIndustry: SteelSector: Basic Materials

Valuation Snapshot

Stable Growth$22.05 - $39.68$29.42
Multi-Stage$39.73 - $43.61$41.63
Blended Fair Value$35.53
Current Price$14.90
Upside138.45%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-26.62%0.00%0.500.992.190.510.462.361.321.330.440.52
YoY Growth---49.59%-54.55%325.80%10.97%-80.35%77.99%-0.11%200.14%-15.04%0.00%
Dividend Yield--2.87%6.24%10.86%1.48%2.75%16.90%5.05%5.57%1.57%2.93%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)263.81
(-) Cash Dividends Paid (M)191.34
(=) Cash Retained (M)72.47
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)52.7632.9819.79
Cash Retained (M)72.4772.4772.47
(-) Cash Required (M)-52.76-32.98-19.79
(=) Excess Retained (M)19.7139.4952.68
(/) Shares Outstanding (M)165.92165.92165.92
(=) Excess Retained per Share0.120.240.32
LTM Dividend per Share1.151.151.15
(+) Excess Retained per Share0.120.240.32
(=) Adjusted Dividend1.271.391.47
WACC / Discount Rate6.35%6.35%6.35%
Growth Rate0.55%1.55%2.55%
Fair Value$22.05$29.42$39.68
Upside / Downside47.96%97.48%166.28%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)263.81267.90272.04276.26280.53284.88293.42
Payout Ratio72.53%76.02%79.52%83.01%86.51%90.00%92.50%
Projected Dividends (M)191.34203.67216.33229.33242.68256.39271.42

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.35%6.35%6.35%
Growth Rate0.55%1.55%2.55%
Year 1 PV (M)189.62191.51193.39
Year 2 PV (M)187.52191.26195.05
Year 3 PV (M)185.08190.65196.34
Year 4 PV (M)182.35189.71197.29
Year 5 PV (M)179.36188.46197.92
PV of Terminal Value (M)5,668.535,956.076,255.17
Equity Value (M)6,592.456,907.677,235.17
Shares Outstanding (M)165.92165.92165.92
Fair Value$39.73$41.63$43.61
Upside / Downside166.66%179.41%192.66%

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