Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

GR Engineering Services Limited (GNG.AX)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$6.88 - $14.13$9.66
Multi-Stage$5.65 - $6.14$5.89
Blended Fair Value$7.77
Current Price$3.25
Upside139.23%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS40.32%10.09%0.200.180.180.150.080.040.080.050.090.09
YoY Growth--6.66%2.10%19.11%84.57%127.24%-55.52%50.24%-39.85%0.85%18.56%
Dividend Yield--6.02%8.57%8.39%7.77%5.44%4.99%9.98%3.87%6.08%9.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)65.39
(-) Cash Dividends Paid (M)64.77
(=) Cash Retained (M)0.62
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.088.174.90
Cash Retained (M)0.620.620.62
(-) Cash Required (M)-13.08-8.17-4.90
(=) Excess Retained (M)-12.46-7.56-4.29
(/) Shares Outstanding (M)170.97170.97170.97
(=) Excess Retained per Share-0.07-0.04-0.03
LTM Dividend per Share0.380.380.38
(+) Excess Retained per Share-0.07-0.04-0.03
(=) Adjusted Dividend0.310.330.35
WACC / Discount Rate10.19%10.19%10.19%
Growth Rate5.50%6.50%7.50%
Fair Value$6.88$9.66$14.13
Upside / Downside111.72%197.10%334.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)65.3969.6474.1778.9984.1289.5992.28
Payout Ratio99.06%97.24%95.43%93.62%91.81%90.00%92.50%
Projected Dividends (M)64.7767.7270.7873.9577.2380.6385.35

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.19%10.19%10.19%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)60.8861.4662.03
Year 2 PV (M)57.2058.2959.39
Year 3 PV (M)53.7355.2756.84
Year 4 PV (M)50.4552.3954.38
Year 5 PV (M)47.3549.6352.01
PV of Terminal Value (M)696.98730.65765.60
Equity Value (M)966.581,007.681,050.25
Shares Outstanding (M)170.97170.97170.97
Fair Value$5.65$5.89$6.14
Upside / Downside73.95%81.35%89.01%

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