Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Southern Cross Electrical Engineering Limited (SXE.AX)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$3.94 - $8.65$5.66
Multi-Stage$2.99 - $3.26$3.12
Blended Fair Value$4.39
Current Price$1.83
Upside139.87%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS22.09%15.92%0.070.050.050.050.030.030.030.000.010.02
YoY Growth--50.54%-0.48%0.43%70.89%5.48%0.28%0.00%-100.00%-66.42%46.94%
Dividend Yield--3.92%2.82%7.14%8.07%5.16%6.00%5.07%0.00%1.39%4.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)53.59
(-) Cash Dividends Paid (M)31.79
(=) Cash Retained (M)21.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.726.704.02
Cash Retained (M)21.8021.8021.80
(-) Cash Required (M)-10.72-6.70-4.02
(=) Excess Retained (M)11.0815.1017.78
(/) Shares Outstanding (M)266.52266.52266.52
(=) Excess Retained per Share0.040.060.07
LTM Dividend per Share0.120.120.12
(+) Excess Retained per Share0.040.060.07
(=) Adjusted Dividend0.160.180.19
WACC / Discount Rate9.81%9.81%9.81%
Growth Rate5.50%6.50%7.50%
Fair Value$3.94$5.66$8.65
Upside / Downside115.03%209.10%372.47%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)53.5957.0760.7864.7368.9473.4275.62
Payout Ratio59.32%65.46%71.59%77.73%83.86%90.00%92.50%
Projected Dividends (M)31.7937.3643.5150.3157.8166.0769.95

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.81%9.81%9.81%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)33.7034.0234.34
Year 2 PV (M)35.4136.0836.76
Year 3 PV (M)36.9337.9939.08
Year 4 PV (M)38.2939.7641.27
Year 5 PV (M)39.4741.3843.36
PV of Terminal Value (M)613.40643.03673.79
Equity Value (M)797.20832.26868.60
Shares Outstanding (M)266.52266.52266.52
Fair Value$2.99$3.12$3.26
Upside / Downside63.45%70.64%78.09%

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