Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Rechi Precision Co., Ltd. (4532.TW)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$20.85 - $33.03$26.41
Multi-Stage$38.93 - $42.71$40.78
Blended Fair Value$33.59
Current Price$24.35
Upside37.96%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.77%-3.06%1.000.900.700.710.511.221.782.231.511.88
YoY Growth--11.11%28.60%-0.99%39.99%-58.33%-31.56%-20.36%48.32%-20.00%37.33%
Dividend Yield--3.31%3.62%3.72%3.94%2.35%8.17%6.99%7.33%4.56%7.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,022.35
(-) Cash Dividends Paid (M)742.73
(=) Cash Retained (M)279.62
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)204.47127.7976.68
Cash Retained (M)279.62279.62279.62
(-) Cash Required (M)-204.47-127.79-76.68
(=) Excess Retained (M)75.15151.83202.95
(/) Shares Outstanding (M)497.86497.86497.86
(=) Excess Retained per Share0.150.300.41
LTM Dividend per Share1.491.491.49
(+) Excess Retained per Share0.150.300.41
(=) Adjusted Dividend1.641.801.90
WACC / Discount Rate7.17%7.17%7.17%
Growth Rate-0.66%0.34%1.34%
Fair Value$20.85$26.41$33.03
Upside / Downside-14.38%8.44%35.65%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,022.351,025.811,029.281,032.771,036.271,039.781,070.97
Payout Ratio72.65%76.12%79.59%83.06%86.53%90.00%92.50%
Projected Dividends (M)742.73780.84819.20857.81896.68935.80990.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.17%7.17%7.17%
Growth Rate-0.66%0.34%1.34%
Year 1 PV (M)721.36728.62735.88
Year 2 PV (M)699.16713.30727.59
Year 3 PV (M)676.35696.98718.02
Year 4 PV (M)653.14679.84707.35
Year 5 PV (M)629.71662.05695.71
PV of Terminal Value (M)16,000.2416,821.9517,677.09
Equity Value (M)19,379.9520,302.7421,261.64
Shares Outstanding (M)497.86497.86497.86
Fair Value$38.93$40.78$42.71
Upside / Downside59.86%67.47%75.38%

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