Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

SMITHFIELD FOODS INC (SFD)

Company Dividend Discount ModelIndustry: Agricultural Farm ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$20.10 - $30.85$25.11
Multi-Stage$43.69 - $48.10$45.85
Blended Fair Value$35.48
Current Price$23.39
Upside51.69%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021201520142013201220112010
DPS0.00%0.00%0.740.831.270.490.080.000.000.000.000.00
YoY Growth---10.84%-34.88%158.33%540.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.63%4.05%0.00%0.00%0.38%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)864.00
(-) Cash Dividends Paid (M)315.00
(=) Cash Retained (M)549.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)172.80108.0064.80
Cash Retained (M)549.00549.00549.00
(-) Cash Required (M)-172.80-108.00-64.80
(=) Excess Retained (M)376.20441.00484.20
(/) Shares Outstanding (M)389.37389.37389.37
(=) Excess Retained per Share0.971.131.24
LTM Dividend per Share0.810.810.81
(+) Excess Retained per Share0.971.131.24
(=) Adjusted Dividend1.781.942.05
WACC / Discount Rate6.65%6.65%6.65%
Growth Rate-2.00%-1.00%0.00%
Fair Value$20.10$25.11$30.85
Upside / Downside-14.06%7.37%31.88%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)864.00855.36846.81838.34829.95821.66846.31
Payout Ratio36.46%47.17%57.88%68.58%79.29%90.00%92.50%
Projected Dividends (M)315.00403.44490.09574.96658.09739.49782.83

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.65%6.65%6.65%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)374.45378.27382.10
Year 2 PV (M)422.18430.84439.59
Year 3 PV (M)459.70473.92488.43
Year 4 PV (M)488.35508.59529.46
Year 5 PV (M)509.33535.85563.47
PV of Terminal Value (M)14,755.5915,523.9516,323.99
Equity Value (M)17,009.6217,851.4318,727.02
Shares Outstanding (M)389.37389.37389.37
Fair Value$43.69$45.85$48.10
Upside / Downside86.77%96.01%105.63%

High-Yield Dividend Screener

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