Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Beijing ZZNode Technologies Co., Ltd. (003007.SZ)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$1.98 - $2.92$2.43
Multi-Stage$3.57 - $3.92$3.74
Blended Fair Value$3.09
Current Price$34.42
Upside-91.03%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS-7.45%0.00%0.200.010.000.310.000.290.290.300.240.00
YoY Growth--1,941.93%10,497.71%-99.97%139,284.96%-99.92%-0.03%-2.08%25.29%0.00%0.00%
Dividend Yield--0.61%0.03%0.00%1.24%0.00%1.12%1.12%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)26.13
(-) Cash Dividends Paid (M)7.41
(=) Cash Retained (M)18.72
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.233.271.96
Cash Retained (M)18.7218.7218.72
(-) Cash Required (M)-5.23-3.27-1.96
(=) Excess Retained (M)13.5015.4616.76
(/) Shares Outstanding (M)103.55103.55103.55
(=) Excess Retained per Share0.130.150.16
LTM Dividend per Share0.070.070.07
(+) Excess Retained per Share0.130.150.16
(=) Adjusted Dividend0.200.220.23
WACC / Discount Rate7.99%7.99%7.99%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.98$2.43$2.92
Upside / Downside-94.25%-92.93%-91.51%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)26.1325.8725.6125.3525.1024.8525.59
Payout Ratio28.35%40.68%53.01%65.34%77.67%90.00%92.50%
Projected Dividends (M)7.4110.5213.5716.5719.4922.3623.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.99%7.99%7.99%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)9.659.749.84
Year 2 PV (M)11.4111.6411.88
Year 3 PV (M)12.7613.1513.56
Year 4 PV (M)13.7614.3314.92
Year 5 PV (M)14.4715.2316.01
PV of Terminal Value (M)307.16323.16339.81
Equity Value (M)369.21387.26406.02
Shares Outstanding (M)103.55103.55103.55
Fair Value$3.57$3.74$3.92
Upside / Downside-89.64%-89.13%-88.61%

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