Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Metcash Limited (MTS.AX)

Company Dividend Discount ModelIndustry: Food DistributionSector: Consumer Defensive

Valuation Snapshot

Stable Growth$18.21 - $99.01$35.48
Multi-Stage$11.42 - $12.48$11.94
Blended Fair Value$23.71
Current Price$3.81
Upside522.36%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.16%11.51%0.150.140.200.180.140.110.120.100.000.01
YoY Growth--13.37%-32.18%9.42%33.85%25.47%-8.23%22.32%7,421.43%-75.86%-89.68%
Dividend Yield--4.78%3.45%5.14%3.82%3.85%4.38%4.14%2.70%0.06%0.30%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)541.70
(-) Cash Dividends Paid (M)346.80
(=) Cash Retained (M)194.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)108.3467.7140.63
Cash Retained (M)194.90194.90194.90
(-) Cash Required (M)-108.34-67.71-40.63
(=) Excess Retained (M)86.56127.19154.27
(/) Shares Outstanding (M)1,084.561,084.561,084.56
(=) Excess Retained per Share0.080.120.14
LTM Dividend per Share0.320.320.32
(+) Excess Retained per Share0.080.120.14
(=) Adjusted Dividend0.400.440.46
WACC / Discount Rate7.46%7.46%7.46%
Growth Rate5.16%6.16%7.16%
Fair Value$18.21$35.48$99.01
Upside / Downside377.94%831.33%2,498.80%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)541.70575.05610.46648.04687.94730.29752.20
Payout Ratio64.02%69.22%74.41%79.61%84.80%90.00%92.50%
Projected Dividends (M)346.80398.03454.26515.89583.40657.27695.79

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.46%7.46%7.46%
Growth Rate5.16%6.16%7.16%
Year 1 PV (M)366.90370.38373.87
Year 2 PV (M)385.97393.34400.79
Year 3 PV (M)404.05415.69427.55
Year 4 PV (M)421.18437.43454.15
Year 5 PV (M)437.39458.58480.60
PV of Terminal Value (M)10,371.7210,874.3511,396.27
Equity Value (M)12,387.2112,949.7813,533.23
Shares Outstanding (M)1,084.561,084.561,084.56
Fair Value$11.42$11.94$12.48
Upside / Downside199.78%213.39%227.51%

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