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Caixa Seguridade Participações S.A. (CXSE3.SA)

Company Dividend Discount ModelIndustry: Insurance - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$105.18 - $290.79$272.52
Multi-Stage$41.98 - $45.87$43.89
Blended Fair Value$158.20
Current Price$15.11
Upside947.00%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS69.06%0.00%1.081.010.650.610.610.080.440.260.170.00
YoY Growth--6.95%55.75%6.03%-0.49%685.72%-82.14%65.68%56.13%0.00%0.00%
Dividend Yield--7.25%6.58%7.37%6.88%8.20%1.04%5.84%3.52%2.26%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,386.58
(-) Cash Dividends Paid (M)3,527.47
(=) Cash Retained (M)859.11
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)877.32548.32328.99
Cash Retained (M)859.11859.11859.11
(-) Cash Required (M)-877.32-548.32-328.99
(=) Excess Retained (M)-18.20310.79530.12
(/) Shares Outstanding (M)3,000.003,000.003,000.00
(=) Excess Retained per Share-0.010.100.18
LTM Dividend per Share1.181.181.18
(+) Excess Retained per Share-0.010.100.18
(=) Adjusted Dividend1.171.281.35
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate5.50%6.50%7.50%
Fair Value$105.18$272.52$290.79
Upside / Downside596.08%1,703.55%1,824.51%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,386.584,671.714,975.375,298.775,643.196,009.996,190.29
Payout Ratio80.41%82.33%84.25%86.17%88.08%90.00%92.50%
Projected Dividends (M)3,527.473,846.314,191.704,565.744,970.695,409.005,726.02

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)3,571.833,605.693,639.55
Year 2 PV (M)3,614.803,683.653,753.15
Year 3 PV (M)3,656.383,761.353,868.30
Year 4 PV (M)3,696.623,838.783,985.00
Year 5 PV (M)3,735.523,915.954,103.28
PV of Terminal Value (M)107,653.33112,853.02118,251.72
Equity Value (M)125,928.48131,658.44137,601.00
Shares Outstanding (M)3,000.003,000.003,000.00
Fair Value$41.98$43.89$45.87
Upside / Downside177.80%190.44%203.55%

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