Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Caribbean Utilities Company, Ltd. (CUP-U.TO)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$15.61 - $27.99$20.81
Multi-Stage$24.42 - $26.78$25.58
Blended Fair Value$23.19
Current Price$13.31
Upside74.25%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.40%3.09%0.680.620.610.610.620.600.590.580.570.55
YoY Growth--9.07%2.48%-0.25%-2.06%3.13%1.51%2.91%1.72%4.04%8.88%
Dividend Yield--5.12%4.38%4.33%4.02%4.14%4.23%3.92%4.26%4.22%5.03%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)45.48
(-) Cash Dividends Paid (M)29.18
(=) Cash Retained (M)16.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.105.683.41
Cash Retained (M)16.3016.3016.30
(-) Cash Required (M)-9.10-5.68-3.41
(=) Excess Retained (M)7.2010.6212.89
(/) Shares Outstanding (M)40.3140.3140.31
(=) Excess Retained per Share0.180.260.32
LTM Dividend per Share0.720.720.72
(+) Excess Retained per Share0.180.260.32
(=) Adjusted Dividend0.900.991.04
WACC / Discount Rate6.93%6.93%6.93%
Growth Rate1.09%2.09%3.09%
Fair Value$15.61$20.81$27.99
Upside / Downside17.31%56.32%110.29%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)45.4846.4347.4048.3949.4050.4351.94
Payout Ratio64.16%69.33%74.50%79.66%84.83%90.00%92.50%
Projected Dividends (M)29.1832.1935.3138.5541.9045.3948.05

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.93%6.93%6.93%
Growth Rate1.09%2.09%3.09%
Year 1 PV (M)29.8130.1030.40
Year 2 PV (M)30.2830.8831.49
Year 3 PV (M)30.6131.5332.46
Year 4 PV (M)30.8132.0533.32
Year 5 PV (M)30.9032.4634.08
PV of Terminal Value (M)832.04874.02917.67
Equity Value (M)984.451,031.041,079.42
Shares Outstanding (M)40.3140.3140.31
Fair Value$24.42$25.58$26.78
Upside / Downside83.50%92.18%101.20%

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