Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

RCE Capital Berhad (9296.KL)

Company Dividend Discount ModelIndustry: Financial - Credit ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$0.63 - $0.97$0.79
Multi-Stage$1.44 - $1.58$1.50
Blended Fair Value$1.15
Current Price$1.12
Upside2.42%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020
DPS22.28%0.00%0.060.070.130.030.030.020.000.000.000.00
YoY Growth---13.27%-44.44%287.40%19.36%22.67%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--5.95%5.27%12.13%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)102.69
(-) Cash Dividends Paid (M)95.42
(=) Cash Retained (M)7.27
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)20.5412.847.70
Cash Retained (M)7.277.277.27
(-) Cash Required (M)-20.54-12.84-7.70
(=) Excess Retained (M)-13.27-5.57-0.43
(/) Shares Outstanding (M)1,469.381,469.381,469.38
(=) Excess Retained per Share-0.010.000.00
LTM Dividend per Share0.060.060.06
(+) Excess Retained per Share-0.010.000.00
(=) Adjusted Dividend0.060.060.06
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate-1.99%-0.99%0.01%
Fair Value$0.63$0.79$0.97
Upside / Downside-43.53%-29.47%-13.38%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)102.69101.67100.6699.6798.6897.71100.64
Payout Ratio92.92%92.34%91.75%91.17%90.58%90.00%92.50%
Projected Dividends (M)95.4293.8892.3690.8789.3987.9493.09

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate-1.99%-0.99%0.01%
Year 1 PV (M)87.1288.0188.90
Year 2 PV (M)79.5481.1782.81
Year 3 PV (M)72.6174.8577.15
Year 4 PV (M)66.2869.0371.86
Year 5 PV (M)60.5163.6666.94
PV of Terminal Value (M)1,742.981,833.731,928.22
Equity Value (M)2,109.032,210.442,315.88
Shares Outstanding (M)1,469.381,469.381,469.38
Fair Value$1.44$1.50$1.58
Upside / Downside28.15%34.32%40.72%

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