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Grupo KUO, S.A.B. de C.V. (KUOA.MX)

Company Dividend Discount ModelIndustry: Packaged FoodsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$341.27 - $1,322.33$961.87
Multi-Stage$204.95 - $224.31$214.45
Blended Fair Value$588.16
Current Price$45.10
Upside1,204.12%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.66%10.20%0.870.000.960.860.440.440.750.610.450.35
YoY Growth--0.00%-100.00%10.97%96.66%0.00%-41.37%22.95%35.56%28.57%6.06%
Dividend Yield--1.85%0.00%2.05%1.73%0.87%0.90%1.58%1.49%1.15%1.09%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,061.45
(-) Cash Dividends Paid (M)1,978.88
(=) Cash Retained (M)1,082.58
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)612.29382.68229.61
Cash Retained (M)1,082.581,082.581,082.58
(-) Cash Required (M)-612.29-382.68-229.61
(=) Excess Retained (M)470.28699.89852.97
(/) Shares Outstanding (M)456.78456.78456.78
(=) Excess Retained per Share1.031.531.87
LTM Dividend per Share4.334.334.33
(+) Excess Retained per Share1.031.531.87
(=) Adjusted Dividend5.365.866.20
WACC / Discount Rate6.29%6.29%6.29%
Growth Rate4.65%5.65%6.65%
Fair Value$341.27$961.87$1,322.33
Upside / Downside656.70%2,032.74%2,832.00%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,061.453,234.353,417.003,609.983,813.844,029.234,150.10
Payout Ratio64.64%69.71%74.78%79.86%84.93%90.00%92.50%
Projected Dividends (M)1,978.882,254.692,555.342,882.763,239.013,626.313,838.85

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.29%6.29%6.29%
Growth Rate4.65%5.65%6.65%
Year 1 PV (M)2,101.152,121.232,141.31
Year 2 PV (M)2,219.172,261.792,304.81
Year 3 PV (M)2,333.042,400.562,469.37
Year 4 PV (M)2,442.852,537.572,635.02
Year 5 PV (M)2,548.702,672.832,801.74
PV of Terminal Value (M)81,970.6585,962.7390,108.86
Equity Value (M)93,615.5697,956.71102,461.12
Shares Outstanding (M)456.78456.78456.78
Fair Value$204.95$214.45$224.31
Upside / Downside354.42%375.50%397.36%

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