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Sto SE & Co. KGaA (0G5B.L)

Company Dividend Discount ModelIndustry: Industrial MaterialsSector: Basic Materials

Valuation Snapshot

Stable Growth$80.80 - $109.24$95.35
Multi-Stage$226.81 - $250.17$238.25
Blended Fair Value$166.80
Current Price$120.80
Upside38.08%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-41.42%-24.80%0.325.625.625.624.594.594.593.715.4728.78
YoY Growth---94.37%0.00%0.00%22.45%0.00%0.00%23.82%-32.27%-80.98%425.77%
Dividend Yield--0.30%4.02%3.73%2.45%3.48%3.97%5.68%2.93%5.83%25.20%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)99.55
(-) Cash Dividends Paid (M)83.03
(=) Cash Retained (M)16.52
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)19.9112.447.47
Cash Retained (M)16.5216.5216.52
(-) Cash Required (M)-19.91-12.44-7.47
(=) Excess Retained (M)-3.394.079.05
(/) Shares Outstanding (M)5.675.675.67
(=) Excess Retained per Share-0.600.721.60
LTM Dividend per Share14.6414.6414.64
(+) Excess Retained per Share-0.600.721.60
(=) Adjusted Dividend14.0415.3516.23
WACC / Discount Rate7.21%7.21%7.21%
Growth Rate-8.66%-7.66%-6.66%
Fair Value$80.80$95.35$109.24
Upside / Downside-33.11%-21.07%-9.57%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)99.5591.9284.8878.3872.3766.8368.83
Payout Ratio83.41%84.73%86.04%87.36%88.68%90.00%92.50%
Projected Dividends (M)83.0377.8873.0468.4764.1860.1463.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.21%7.21%7.21%
Growth Rate-8.66%-7.66%-6.66%
Year 1 PV (M)71.8672.6573.44
Year 2 PV (M)62.1863.5564.93
Year 3 PV (M)53.7955.5757.40
Year 4 PV (M)46.5248.5950.73
Year 5 PV (M)40.2242.4744.82
PV of Terminal Value (M)1,012.251,068.891,128.03
Equity Value (M)1,286.811,351.711,419.34
Shares Outstanding (M)5.675.675.67
Fair Value$226.81$238.25$250.17
Upside / Downside87.76%97.23%107.10%

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