Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Dutch Lady Milk Industries Berhad (3026.KL)

Company Dividend Discount ModelIndustry: Packaged FoodsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$13.94 - $20.67$17.15
Multi-Stage$25.71 - $28.28$26.97
Blended Fair Value$22.06
Current Price$27.12
Upside-18.64%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS-12.94%0.00%0.500.500.500.500.801.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%-37.50%-20.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.73%1.54%1.89%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)111.21
(-) Cash Dividends Paid (M)32.00
(=) Cash Retained (M)79.21
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)22.2413.908.34
Cash Retained (M)79.2179.2179.21
(-) Cash Required (M)-22.24-13.90-8.34
(=) Excess Retained (M)56.9765.3170.87
(/) Shares Outstanding (M)64.0064.0064.00
(=) Excess Retained per Share0.891.021.11
LTM Dividend per Share0.500.500.50
(+) Excess Retained per Share0.891.021.11
(=) Adjusted Dividend1.391.521.61
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate-2.00%-1.00%0.00%
Fair Value$13.94$17.15$20.67
Upside / Downside-48.61%-36.75%-23.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)111.21110.10109.00107.91106.83105.76108.94
Payout Ratio28.77%41.02%53.26%65.51%77.75%90.00%92.50%
Projected Dividends (M)32.0045.1658.0670.6983.0795.19100.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)41.4841.9042.33
Year 2 PV (M)48.9849.9851.00
Year 3 PV (M)54.7756.4758.20
Year 4 PV (M)59.1261.5764.09
Year 5 PV (M)62.2265.4668.83
PV of Terminal Value (M)1,379.191,451.011,525.79
Equity Value (M)1,645.761,726.391,810.23
Shares Outstanding (M)64.0064.0064.00
Fair Value$25.71$26.97$28.28
Upside / Downside-5.18%-0.54%4.30%

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