Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Industrias Bachoco, S.A.B. de C.V. (BACHOCOB.MX)

Company Dividend Discount ModelIndustry: Agricultural Farm ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$235.68 - $1,268.25$462.92
Multi-Stage$131.61 - $144.03$137.71
Blended Fair Value$300.31
Current Price$73.00
Upside311.39%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS2.90%5.06%1.641.641.421.321.401.421.301.301.500.00
YoY Growth--0.00%15.43%7.56%-5.74%-1.41%9.23%0.00%-13.26%69,069.23%-99.78%
Dividend Yield--2.25%1.68%1.83%1.94%2.08%1.91%1.38%1.53%2.03%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,818.35
(-) Cash Dividends Paid (M)491.50
(=) Cash Retained (M)3,326.85
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)763.67477.29286.38
Cash Retained (M)3,326.853,326.853,326.85
(-) Cash Required (M)-763.67-477.29-286.38
(=) Excess Retained (M)2,563.182,849.563,040.47
(/) Shares Outstanding (M)598.76598.76598.76
(=) Excess Retained per Share4.284.765.08
LTM Dividend per Share0.820.820.82
(+) Excess Retained per Share4.284.765.08
(=) Adjusted Dividend5.105.585.90
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate5.50%6.50%7.50%
Fair Value$235.68$462.92$1,268.25
Upside / Downside222.85%534.13%1,637.33%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,818.354,066.544,330.874,612.374,912.185,231.475,388.41
Payout Ratio12.87%28.30%43.72%59.15%74.57%90.00%92.50%
Projected Dividends (M)491.501,150.741,893.602,728.163,663.234,708.324,984.28

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,057.611,067.631,077.66
Year 2 PV (M)1,599.511,629.971,660.73
Year 3 PV (M)2,117.972,178.772,240.72
Year 4 PV (M)2,613.742,714.262,817.64
Year 5 PV (M)3,087.553,236.683,391.52
PV of Terminal Value (M)68,325.4371,625.5775,052.02
Equity Value (M)78,801.8082,452.8886,240.29
Shares Outstanding (M)598.76598.76598.76
Fair Value$131.61$137.71$144.03
Upside / Downside80.29%88.64%97.30%

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