Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Sembcorp Industries Ltd (U96.SI)

Company Dividend Discount ModelIndustry: ConglomeratesSector: Industrials

Valuation Snapshot

Stable Growth$5.98 - $8.28$7.14
Multi-Stage$14.96 - $16.53$15.73
Blended Fair Value$11.43
Current Price$6.85
Upside66.93%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS28.63%-4.43%0.140.130.070.060.030.040.040.090.120.17
YoY Growth--8.23%84.80%16.82%98.15%-23.94%0.00%-57.49%-23.16%-29.95%-21.09%
Dividend Yield--2.51%2.39%2.05%2.96%1.75%3.42%3.09%5.96%8.41%11.22%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,959.00
(-) Cash Dividends Paid (M)569.00
(=) Cash Retained (M)1,390.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)391.80244.88146.93
Cash Retained (M)1,390.001,390.001,390.00
(-) Cash Required (M)-391.80-244.88-146.93
(=) Excess Retained (M)998.201,145.131,243.08
(/) Shares Outstanding (M)1,807.151,807.151,807.15
(=) Excess Retained per Share0.550.630.69
LTM Dividend per Share0.310.310.31
(+) Excess Retained per Share0.550.630.69
(=) Adjusted Dividend0.870.951.00
WACC / Discount Rate7.14%7.14%7.14%
Growth Rate-6.43%-5.43%-4.43%
Fair Value$5.98$7.14$8.28
Upside / Downside-12.69%4.20%20.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,959.001,852.711,752.191,657.121,567.211,482.181,526.64
Payout Ratio29.05%41.24%53.43%65.62%77.81%90.00%92.50%
Projected Dividends (M)569.00763.99936.151,087.371,219.431,333.961,412.14

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.14%7.14%7.14%
Growth Rate-6.43%-5.43%-4.43%
Year 1 PV (M)705.52713.06720.60
Year 2 PV (M)798.34815.50832.83
Year 3 PV (M)856.34884.09912.43
Year 4 PV (M)886.85925.37965.13
Year 5 PV (M)895.90944.80995.82
PV of Terminal Value (M)22,896.5624,146.4425,450.31
Equity Value (M)27,039.5228,429.2629,877.13
Shares Outstanding (M)1,807.151,807.151,807.15
Fair Value$14.96$15.73$16.53
Upside / Downside118.43%129.66%141.35%

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