Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Atmus Filtration Technologies Inc. (ATMU)

Company Dividend Discount ModelIndustry: Industrial - Pollution & Treatment ControlsSector: Industrials

Valuation Snapshot

Stable Growth$16.54 - $23.67$20.03
Multi-Stage$25.40 - $27.93$26.64
Blended Fair Value$23.34
Current Price$45.09
Upside-48.24%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.100.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.27%0.00%0.00%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)199.50
(-) Cash Dividends Paid (M)16.80
(=) Cash Retained (M)182.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)39.9024.9414.96
Cash Retained (M)182.70182.70182.70
(-) Cash Required (M)-39.90-24.94-14.96
(=) Excess Retained (M)142.80157.76167.74
(/) Shares Outstanding (M)83.1083.1083.10
(=) Excess Retained per Share1.721.902.02
LTM Dividend per Share0.200.200.20
(+) Excess Retained per Share1.721.902.02
(=) Adjusted Dividend1.922.102.22
WACC / Discount Rate9.38%9.38%9.38%
Growth Rate-2.00%-1.00%0.00%
Fair Value$16.54$20.03$23.67
Upside / Downside-63.32%-55.57%-47.50%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)199.50197.51195.53193.57191.64189.72195.41
Payout Ratio8.42%24.74%41.05%57.37%73.68%90.00%92.50%
Projected Dividends (M)16.8048.8680.27111.05141.21170.75180.76

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.38%9.38%9.38%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)44.2244.6745.12
Year 2 PV (M)65.7467.0968.45
Year 3 PV (M)82.3184.8687.46
Year 4 PV (M)94.7298.65102.70
Year 5 PV (M)103.66109.06114.68
PV of Terminal Value (M)1,719.841,809.391,902.64
Equity Value (M)2,110.492,213.722,321.04
Shares Outstanding (M)83.1083.1083.10
Fair Value$25.40$26.64$27.93
Upside / Downside-43.67%-40.92%-38.06%

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