Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Wuxi Best Precision Machinery Co., Ltd. (300580.SZ)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$101.25 - $119.29$111.79
Multi-Stage$72.37 - $79.43$75.83
Blended Fair Value$93.81
Current Price$29.09
Upside222.49%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS20.97%22.49%0.170.160.080.110.070.060.060.050.040.04
YoY Growth--2.96%99.32%-23.43%51.79%8.59%14.29%2.53%24.13%20.40%67.62%
Dividend Yield--0.53%0.88%0.80%1.14%0.90%0.83%0.67%0.63%0.33%0.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)300.13
(-) Cash Dividends Paid (M)70.08
(=) Cash Retained (M)230.06
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)60.0337.5222.51
Cash Retained (M)230.06230.06230.06
(-) Cash Required (M)-60.03-37.52-22.51
(=) Excess Retained (M)170.03192.54207.55
(/) Shares Outstanding (M)500.37500.37500.37
(=) Excess Retained per Share0.340.380.41
LTM Dividend per Share0.140.140.14
(+) Excess Retained per Share0.340.380.41
(=) Adjusted Dividend0.480.520.55
WACC / Discount Rate1.25%1.25%1.25%
Growth Rate5.50%6.50%7.50%
Fair Value$101.25$111.79$119.29
Upside / Downside248.06%284.30%310.07%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)300.13319.64340.42362.55386.11411.21423.55
Payout Ratio23.35%36.68%50.01%63.34%76.67%90.00%92.50%
Projected Dividends (M)70.08117.24170.24229.64296.03370.09391.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate1.25%1.25%1.25%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)114.70115.79116.88
Year 2 PV (M)162.95166.05169.18
Year 3 PV (M)215.04221.21227.50
Year 4 PV (M)271.21281.64292.37
Year 5 PV (M)331.72347.74364.37
PV of Terminal Value (M)35,115.8036,811.9138,572.93
Equity Value (M)36,211.4237,944.3439,743.23
Shares Outstanding (M)500.37500.37500.37
Fair Value$72.37$75.83$79.43
Upside / Downside148.78%160.68%173.04%

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