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Caleres, Inc. (CAL)

Company Dividend Discount ModelIndustry: Apparel - Footwear & AccessoriesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$3.90 - $5.49$4.69
Multi-Stage$6.93 - $7.61$7.27
Blended Fair Value$5.98
Current Price$11.04
Upside-45.84%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-3.23%-2.30%0.300.300.310.330.330.350.370.370.370.38
YoY Growth---2.61%-2.26%-4.36%-1.08%-5.76%-4.68%-0.37%-0.64%-1.22%0.13%
Dividend Yield--1.87%0.82%1.37%1.42%1.41%4.78%1.37%1.13%1.29%1.49%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)20.61
(-) Cash Dividends Paid (M)9.52
(=) Cash Retained (M)11.09
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.122.581.55
Cash Retained (M)11.0911.0911.09
(-) Cash Required (M)-4.12-2.58-1.55
(=) Excess Retained (M)6.968.519.54
(/) Shares Outstanding (M)32.6432.6432.64
(=) Excess Retained per Share0.210.260.29
LTM Dividend per Share0.290.290.29
(+) Excess Retained per Share0.210.260.29
(=) Adjusted Dividend0.510.550.58
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-3.40%-2.40%-1.40%
Fair Value$3.90$4.69$5.49
Upside / Downside-64.63%-57.52%-50.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)20.6120.1219.6319.1618.7018.2518.80
Payout Ratio46.21%54.97%63.73%72.48%81.24%90.00%92.50%
Projected Dividends (M)9.5211.0612.5113.8915.1916.4317.39

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-3.40%-2.40%-1.40%
Year 1 PV (M)10.0310.1410.24
Year 2 PV (M)10.3010.5110.73
Year 3 PV (M)10.3710.7011.03
Year 4 PV (M)10.2910.7211.17
Year 5 PV (M)10.1010.6311.18
PV of Terminal Value (M)175.25184.52194.16
Equity Value (M)226.34237.21248.51
Shares Outstanding (M)32.6432.6432.64
Fair Value$6.93$7.27$7.61
Upside / Downside-37.19%-34.17%-31.03%

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