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Sto SE & Co. KGaA (0G5B.L)

Company Dividend Discount ModelIndustry: Industrial MaterialsSector: Basic Materials

Valuation Snapshot

Stable Growth$80.89 - $109.38$95.47
Multi-Stage$227.75 - $251.22$239.24
Blended Fair Value$167.35
Current Price$120.80
Upside38.54%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-41.42%-24.80%0.325.625.625.624.594.594.593.715.4728.78
YoY Growth---94.37%0.00%0.00%22.45%0.00%0.00%23.82%-32.27%-80.98%425.77%
Dividend Yield--0.30%4.02%3.73%2.45%3.48%3.97%5.68%2.93%5.83%25.20%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)99.55
(-) Cash Dividends Paid (M)83.03
(=) Cash Retained (M)16.52
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)19.9112.447.47
Cash Retained (M)16.5216.5216.52
(-) Cash Required (M)-19.91-12.44-7.47
(=) Excess Retained (M)-3.394.079.05
(/) Shares Outstanding (M)5.675.675.67
(=) Excess Retained per Share-0.600.721.60
LTM Dividend per Share14.6414.6414.64
(+) Excess Retained per Share-0.600.721.60
(=) Adjusted Dividend14.0415.3516.23
WACC / Discount Rate7.19%7.19%7.19%
Growth Rate-8.66%-7.66%-6.66%
Fair Value$80.89$95.47$109.38
Upside / Downside-33.04%-20.97%-9.45%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)99.5591.9284.8878.3872.3766.8368.83
Payout Ratio83.41%84.73%86.04%87.36%88.68%90.00%92.50%
Projected Dividends (M)83.0377.8873.0468.4764.1860.1463.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.19%7.19%7.19%
Growth Rate-8.66%-7.66%-6.66%
Year 1 PV (M)71.8772.6673.45
Year 2 PV (M)62.2063.5764.95
Year 3 PV (M)53.8155.6057.43
Year 4 PV (M)46.5548.6250.76
Year 5 PV (M)40.2542.5144.86
PV of Terminal Value (M)1,017.451,074.381,133.83
Equity Value (M)1,292.141,357.341,425.28
Shares Outstanding (M)5.675.675.67
Fair Value$227.75$239.24$251.22
Upside / Downside88.54%98.05%107.96%

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