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SciPlay Corporation (SCPL)

Company Dividend Discount ModelIndustry: Electronic Gaming & MultimediaSector: Technology

Valuation Snapshot

Stable Growth$40.77 - $58.68$49.51
Multi-Stage$64.98 - $71.43$68.14
Blended Fair Value$58.83
Current Price$19.68
Upside198.92%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202220212020201920182017
DPS-5.22%0.00%1.001.290.5313.440.001.300.000.000.000.00
YoY Growth---23.00%141.94%-96.02%0.00%-100.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--5.87%10.01%3.30%140.98%0.00%8.54%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)133.90
(-) Cash Dividends Paid (M)23.30
(=) Cash Retained (M)110.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)26.7816.7410.04
Cash Retained (M)110.60110.60110.60
(-) Cash Required (M)-26.78-16.74-10.04
(=) Excess Retained (M)83.8293.86100.56
(/) Shares Outstanding (M)23.2023.2023.20
(=) Excess Retained per Share3.614.054.33
LTM Dividend per Share1.001.001.00
(+) Excess Retained per Share3.614.054.33
(=) Adjusted Dividend4.625.055.34
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$40.77$49.51$58.68
Upside / Downside107.18%151.58%198.17%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)133.90132.56131.24129.92128.62127.34131.16
Payout Ratio17.40%31.92%46.44%60.96%75.48%90.00%92.50%
Projected Dividends (M)23.3042.3160.9579.2097.09114.60121.32

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)38.3938.7939.18
Year 2 PV (M)50.1851.2152.25
Year 3 PV (M)59.1660.9962.86
Year 4 PV (M)65.8068.5371.34
Year 5 PV (M)70.4874.1577.97
PV of Terminal Value (M)1,223.541,287.251,353.59
Equity Value (M)1,507.561,580.921,657.19
Shares Outstanding (M)23.2023.2023.20
Fair Value$64.98$68.14$71.43
Upside / Downside230.19%246.26%262.96%

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