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Signature International Berhad (7246.KL)

Company Dividend Discount ModelIndustry: Furnishings, Fixtures & AppliancesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$1.32 - $2.04$1.65
Multi-Stage$3.00 - $3.30$3.15
Blended Fair Value$2.40
Current Price$1.35
Upside77.90%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020
DPS0.00%0.00%0.070.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%-100.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--5.19%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)91.42
(-) Cash Dividends Paid (M)44.55
(=) Cash Retained (M)46.88
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18.2811.436.86
Cash Retained (M)46.8846.8846.88
(-) Cash Required (M)-18.28-11.43-6.86
(=) Excess Retained (M)28.5935.4540.02
(/) Shares Outstanding (M)643.71643.71643.71
(=) Excess Retained per Share0.040.060.06
LTM Dividend per Share0.070.070.07
(+) Excess Retained per Share0.040.060.06
(=) Adjusted Dividend0.110.120.13
WACC / Discount Rate6.44%6.44%6.44%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.32$1.65$2.04
Upside / Downside-2.31%22.44%51.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)91.4290.5189.6088.7187.8286.9489.55
Payout Ratio48.72%56.98%65.23%73.49%81.74%90.00%92.50%
Projected Dividends (M)44.5551.5758.4565.1971.7978.2582.83

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.44%6.44%6.44%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)47.9648.4548.94
Year 2 PV (M)50.5551.5952.64
Year 3 PV (M)52.4354.0555.71
Year 4 PV (M)53.7055.9258.22
Year 5 PV (M)54.4357.2660.22
PV of Terminal Value (M)1,673.511,760.651,851.39
Equity Value (M)1,932.582,027.932,127.11
Shares Outstanding (M)643.71643.71643.71
Fair Value$3.00$3.15$3.30
Upside / Downside122.39%133.36%144.78%

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