Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Loyalty Founder Enterprise Co.,Ltd. (5465.TWO)

Company Dividend Discount ModelIndustry: Computer HardwareSector: Technology

Valuation Snapshot

Stable Growth$12.33 - $17.48$14.87
Multi-Stage$20.79 - $22.69$21.72
Blended Fair Value$18.30
Current Price$34.10
Upside-46.34%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS37.97%0.00%1.501.501.151.281.110.300.000.000.000.00
YoY Growth--0.00%30.43%-10.00%15.00%270.37%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.35%3.29%4.25%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)276.22
(-) Cash Dividends Paid (M)265.83
(=) Cash Retained (M)10.39
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)55.2434.5320.72
Cash Retained (M)10.3910.3910.39
(-) Cash Required (M)-55.24-34.53-20.72
(=) Excess Retained (M)-44.85-24.14-10.33
(/) Shares Outstanding (M)147.31147.31147.31
(=) Excess Retained per Share-0.30-0.16-0.07
LTM Dividend per Share1.801.801.80
(+) Excess Retained per Share-0.30-0.16-0.07
(=) Adjusted Dividend1.501.641.73
WACC / Discount Rate9.92%9.92%9.92%
Growth Rate-2.00%-1.00%0.00%
Fair Value$12.33$14.87$17.48
Upside / Downside-63.84%-56.38%-48.73%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)276.22273.46270.72268.02265.34262.68270.56
Payout Ratio96.24%94.99%93.74%92.50%91.25%90.00%92.50%
Projected Dividends (M)265.83259.76253.78247.90242.11236.41250.27

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.92%9.92%9.92%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)233.93236.32238.70
Year 2 PV (M)205.82210.04214.31
Year 3 PV (M)181.06186.66192.37
Year 4 PV (M)159.24165.84172.65
Year 5 PV (M)140.03147.33154.92
PV of Terminal Value (M)2,142.012,253.552,369.69
Equity Value (M)3,062.093,199.733,342.63
Shares Outstanding (M)147.31147.31147.31
Fair Value$20.79$21.72$22.69
Upside / Downside-39.04%-36.30%-33.46%

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