Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Dutch Lady Milk Industries Berhad (3026.KL)

Company Dividend Discount ModelIndustry: Packaged FoodsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$14.17 - $21.12$17.48
Multi-Stage$26.67 - $29.34$27.98
Blended Fair Value$22.73
Current Price$27.12
Upside-16.20%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS-12.94%0.00%0.500.500.500.500.801.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%-37.50%-20.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.73%1.54%1.89%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)111.21
(-) Cash Dividends Paid (M)32.00
(=) Cash Retained (M)79.21
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)22.2413.908.34
Cash Retained (M)79.2179.2179.21
(-) Cash Required (M)-22.24-13.90-8.34
(=) Excess Retained (M)56.9765.3170.87
(/) Shares Outstanding (M)64.0064.0064.00
(=) Excess Retained per Share0.891.021.11
LTM Dividend per Share0.500.500.50
(+) Excess Retained per Share0.891.021.11
(=) Adjusted Dividend1.391.521.61
WACC / Discount Rate7.61%7.61%7.61%
Growth Rate-2.00%-1.00%0.00%
Fair Value$14.17$17.48$21.12
Upside / Downside-47.74%-35.55%-22.14%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)111.21110.10109.00107.91106.83105.76108.94
Payout Ratio28.77%41.02%53.26%65.51%77.75%90.00%92.50%
Projected Dividends (M)32.0045.1658.0670.6983.0795.19100.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.61%7.61%7.61%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)41.5441.9742.39
Year 2 PV (M)49.1350.1351.15
Year 3 PV (M)55.0256.7358.46
Year 4 PV (M)59.4861.9464.48
Year 5 PV (M)62.6965.9669.36
PV of Terminal Value (M)1,438.881,513.801,591.82
Equity Value (M)1,706.741,790.531,877.66
Shares Outstanding (M)64.0064.0064.00
Fair Value$26.67$27.98$29.34
Upside / Downside-1.67%3.16%8.18%

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