Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Hikari Food Service Co Ltd (138A.T)

Company Dividend Discount ModelIndustry: RestaurantsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$1,060.50 - $1,581.83$1,308.49
Multi-Stage$2,010.55 - $2,211.74$2,109.18
Blended Fair Value$1,708.83
Current Price$2,386.00
Upside-28.38%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%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)128.41
(-) Cash Dividends Paid (M)39.61
(=) Cash Retained (M)88.79
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)25.6816.059.63
Cash Retained (M)88.7988.7988.79
(-) Cash Required (M)-25.68-16.05-9.63
(=) Excess Retained (M)63.1172.7479.16
(/) Shares Outstanding (M)0.990.990.99
(=) Excess Retained per Share63.6273.3379.80
LTM Dividend per Share39.9339.9339.93
(+) Excess Retained per Share63.6273.3379.80
(=) Adjusted Dividend103.55113.26119.73
WACC / Discount Rate7.57%7.57%7.57%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1,060.50$1,308.49$1,581.83
Upside / Downside-55.55%-45.16%-33.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)128.41127.12125.85124.59123.35122.11125.78
Payout Ratio30.85%42.68%54.51%66.34%78.17%90.00%92.50%
Projected Dividends (M)39.6154.2568.6082.6596.42109.90116.34

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.57%7.57%7.57%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)49.9350.4450.95
Year 2 PV (M)58.0959.2960.49
Year 3 PV (M)64.4166.4068.44
Year 4 PV (M)69.1572.0174.97
Year 5 PV (M)72.5376.3180.24
PV of Terminal Value (M)1,680.361,767.861,858.96
Equity Value (M)1,994.472,092.302,194.04
Shares Outstanding (M)0.990.990.99
Fair Value$2,010.55$2,109.18$2,211.74
Upside / Downside-15.74%-11.60%-7.30%

High-Yield Dividend Screener

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