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CVR Partners, LP (UAN)

Company Dividend Discount ModelIndustry: Agricultural InputsSector: Basic Materials

Valuation Snapshot

Stable Growth$189.01 - $358.22$257.39
Multi-Stage$190.30 - $207.55$198.77
Blended Fair Value$228.08
Current Price$90.12
Upside153.08%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.31%-3.70%6.6926.6219.374.700.004.290.000.216.588.65
YoY Growth---74.87%37.39%312.31%0.00%-100.00%0.00%-100.00%-96.74%-23.87%-11.34%
Dividend Yield--8.90%33.76%21.73%3.41%0.00%41.62%0.00%0.66%14.16%10.34%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)127.22
(-) Cash Dividends Paid (M)96.08
(=) Cash Retained (M)31.15
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)25.4415.909.54
Cash Retained (M)31.1531.1531.15
(-) Cash Required (M)-25.44-15.90-9.54
(=) Excess Retained (M)5.7015.2421.60
(/) Shares Outstanding (M)10.5710.5710.57
(=) Excess Retained per Share0.541.442.04
LTM Dividend per Share9.099.099.09
(+) Excess Retained per Share0.541.442.04
(=) Adjusted Dividend9.6310.5311.13
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.81%4.81%5.81%
Fair Value$189.01$257.39$358.22
Upside / Downside109.73%185.60%297.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)127.22133.34139.75146.48153.52160.90165.73
Payout Ratio75.52%78.41%81.31%84.21%87.10%90.00%92.50%
Projected Dividends (M)96.08104.56113.64123.34133.72144.81153.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.81%4.81%5.81%
Year 1 PV (M)94.9395.8496.75
Year 2 PV (M)93.6695.4797.30
Year 3 PV (M)92.2994.9997.73
Year 4 PV (M)90.8494.3998.05
Year 5 PV (M)89.3193.7098.25
PV of Terminal Value (M)1,550.451,626.581,705.67
Equity Value (M)2,011.482,100.972,193.76
Shares Outstanding (M)10.5710.5710.57
Fair Value$190.30$198.77$207.55
Upside / Downside111.16%120.56%130.30%

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