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Steel Connect, Inc. (STCN)

Company Dividend Discount ModelIndustry: Advertising AgenciesSector: Communication Services

Valuation Snapshot

Stable Growth$5.32 - $7.29$6.32
Multi-Stage$9.47 - $10.45$9.95
Blended Fair Value$8.13
Current Price$10.61
Upside-23.34%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.080.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.75%0.00%0.00%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)27.05
(-) Cash Dividends Paid (M)0.54
(=) Cash Retained (M)26.52
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.413.382.03
Cash Retained (M)26.5226.5226.52
(-) Cash Required (M)-5.41-3.38-2.03
(=) Excess Retained (M)21.1123.1424.49
(/) Shares Outstanding (M)26.7326.7326.73
(=) Excess Retained per Share0.790.870.92
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.790.870.92
(=) Adjusted Dividend0.810.890.94
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-5.32%-4.32%-3.32%
Fair Value$5.32$6.32$7.29
Upside / Downside-49.87%-40.46%-31.28%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)27.0525.8924.7723.7022.6821.7022.35
Payout Ratio1.98%19.59%37.19%54.79%72.40%90.00%92.50%
Projected Dividends (M)0.545.079.2112.9916.4219.5320.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-5.32%-4.32%-3.32%
Year 1 PV (M)4.604.654.70
Year 2 PV (M)7.587.747.90
Year 3 PV (M)9.6910.0010.32
Year 4 PV (M)11.1111.5912.08
Year 5 PV (M)11.9912.6313.31
PV of Terminal Value (M)208.10219.33231.03
Equity Value (M)253.07265.94279.34
Shares Outstanding (M)26.7326.7326.73
Fair Value$9.47$9.95$10.45
Upside / Downside-10.76%-6.22%-1.49%

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