Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Cadence Opportunities Fund Limited (CDO.AX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$1.72 - $2.47$2.08
Multi-Stage$2.94 - $3.21$3.07
Blended Fair Value$2.58
Current Price$1.70
Upside51.63%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020
DPS0.00%0.00%0.080.090.090.090.020.000.000.000.000.00
YoY Growth---14.57%-0.99%10.37%332.55%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.70%5.44%5.19%3.57%0.66%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)3.83
(-) Cash Dividends Paid (M)2.73
(=) Cash Retained (M)1.11
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.770.480.29
Cash Retained (M)1.111.111.11
(-) Cash Required (M)-0.77-0.48-0.29
(=) Excess Retained (M)0.340.630.82
(/) Shares Outstanding (M)15.7215.7215.72
(=) Excess Retained per Share0.020.040.05
LTM Dividend per Share0.170.170.17
(+) Excess Retained per Share0.020.040.05
(=) Adjusted Dividend0.200.210.23
WACC / Discount Rate9.14%9.14%9.14%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.72$2.08$2.47
Upside / Downside0.92%22.50%45.12%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3.833.793.763.723.683.643.75
Payout Ratio71.14%74.91%78.68%82.45%86.23%90.00%92.50%
Projected Dividends (M)2.732.842.963.073.173.283.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.14%9.14%9.14%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)2.582.602.63
Year 2 PV (M)2.432.482.53
Year 3 PV (M)2.292.362.43
Year 4 PV (M)2.152.242.33
Year 5 PV (M)2.012.122.23
PV of Terminal Value (M)34.6936.4938.38
Equity Value (M)46.1548.2950.52
Shares Outstanding (M)15.7215.7215.72
Fair Value$2.94$3.07$3.21
Upside / Downside72.72%80.76%89.11%

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