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Grupo KUO, S.A.B. de C.V. (KUOA.MX)

Company Dividend Discount ModelIndustry: Packaged FoodsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$337.58 - $1,322.33$935.72
Multi-Stage$203.81 - $223.06$213.25
Blended Fair Value$574.49
Current Price$45.10
Upside1,173.81%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.66%10.20%0.870.000.960.860.440.440.750.610.450.35
YoY Growth--0.00%-100.00%10.97%96.66%0.00%-41.37%22.95%35.56%28.57%6.06%
Dividend Yield--1.85%0.00%2.05%1.73%0.87%0.90%1.58%1.49%1.15%1.09%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,061.45
(-) Cash Dividends Paid (M)1,978.88
(=) Cash Retained (M)1,082.58
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)612.29382.68229.61
Cash Retained (M)1,082.581,082.581,082.58
(-) Cash Required (M)-612.29-382.68-229.61
(=) Excess Retained (M)470.28699.89852.97
(/) Shares Outstanding (M)456.78456.78456.78
(=) Excess Retained per Share1.031.531.87
LTM Dividend per Share4.334.334.33
(+) Excess Retained per Share1.031.531.87
(=) Adjusted Dividend5.365.866.20
WACC / Discount Rate6.31%6.31%6.31%
Growth Rate4.65%5.65%6.65%
Fair Value$337.58$935.72$1,322.33
Upside / Downside648.51%1,974.76%2,832.00%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,061.453,234.353,417.003,609.983,813.844,029.234,150.10
Payout Ratio64.64%69.71%74.78%79.86%84.93%90.00%92.50%
Projected Dividends (M)1,978.882,254.692,555.342,882.763,239.013,626.313,838.85

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.31%6.31%6.31%
Growth Rate4.65%5.65%6.65%
Year 1 PV (M)2,100.802,120.872,140.95
Year 2 PV (M)2,218.422,261.022,304.03
Year 3 PV (M)2,331.852,399.342,468.12
Year 4 PV (M)2,441.192,535.852,633.23
Year 5 PV (M)2,546.552,670.572,799.37
PV of Terminal Value (M)81,455.8385,422.8489,542.93
Equity Value (M)93,094.6497,410.49101,888.63
Shares Outstanding (M)456.78456.78456.78
Fair Value$203.81$213.25$223.06
Upside / Downside351.90%372.85%394.58%

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