Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Aerojet Rocketdyne Holdings, Inc. (AJRD)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$9.13 - $14.34$11.52
Multi-Stage$10.80 - $11.84$11.31
Blended Fair Value$11.42
Current Price$56.17
Upside-79.68%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022202120202019201820172016201520142013
DPS0.00%0.00%0.035.220.000.000.000.000.000.000.000.00
YoY Growth---99.37%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.06%13.28%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)74.00
(-) Cash Dividends Paid (M)2.00
(=) Cash Retained (M)72.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.809.255.55
Cash Retained (M)72.0072.0072.00
(-) Cash Required (M)-14.80-9.25-5.55
(=) Excess Retained (M)57.2062.7566.45
(/) Shares Outstanding (M)82.0882.0882.08
(=) Excess Retained per Share0.700.760.81
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.700.760.81
(=) Adjusted Dividend0.720.790.83
WACC / Discount Rate9.60%9.60%9.60%
Growth Rate1.57%2.57%3.57%
Fair Value$9.13$11.52$14.34
Upside / Downside-83.74%-79.49%-74.47%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)74.0075.9177.8679.8681.9284.0386.55
Payout Ratio2.70%20.16%37.62%55.08%72.54%90.00%92.50%
Projected Dividends (M)2.0015.3029.2943.9959.4375.6380.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.60%9.60%9.60%
Growth Rate1.57%2.57%3.57%
Year 1 PV (M)13.8313.9614.10
Year 2 PV (M)23.9124.3924.86
Year 3 PV (M)32.4533.4234.40
Year 4 PV (M)39.6041.1942.82
Year 5 PV (M)45.5447.8350.20
PV of Terminal Value (M)730.68767.36805.50
Equity Value (M)886.01928.14971.89
Shares Outstanding (M)82.0882.0882.08
Fair Value$10.80$11.31$11.84
Upside / Downside-80.78%-79.87%-78.92%

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