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Cargotec Corporation (CGCBV.HE)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$1,303.40 - $3,197.55$2,996.57
Multi-Stage$457.93 - $501.63$479.38
Blended Fair Value$1,737.97
Current Price$42.00
Upside4,038.03%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.31%17.82%2.141.351.081.071.201.101.050.960.820.56
YoY Growth--59.31%25.18%0.14%-10.80%9.58%4.41%9.32%17.80%46.26%34.20%
Dividend Yield--5.11%2.12%2.40%3.11%2.61%6.49%3.05%2.22%1.76%1.97%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,039.20
(-) Cash Dividends Paid (M)138.20
(=) Cash Retained (M)901.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)207.84129.9077.94
Cash Retained (M)901.00901.00901.00
(-) Cash Required (M)-207.84-129.90-77.94
(=) Excess Retained (M)693.16771.10823.06
(/) Shares Outstanding (M)64.6364.6364.63
(=) Excess Retained per Share10.7211.9312.73
LTM Dividend per Share2.142.142.14
(+) Excess Retained per Share10.7211.9312.73
(=) Adjusted Dividend12.8614.0714.87
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate5.50%6.50%7.50%
Fair Value$1,303.40$2,996.57$3,197.55
Upside / Downside3,003.34%7,034.69%7,513.21%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,039.201,106.751,178.691,255.301,336.901,423.791,466.51
Payout Ratio13.30%28.64%43.98%59.32%74.66%90.00%92.50%
Projected Dividends (M)138.20316.96518.38744.64998.121,281.411,356.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)294.71297.50300.29
Year 2 PV (M)448.14456.68465.30
Year 3 PV (M)598.55615.73633.24
Year 4 PV (M)745.98774.67804.17
Year 5 PV (M)890.47933.48978.13
PV of Terminal Value (M)26,620.3427,906.1229,241.10
Equity Value (M)29,598.1930,984.1732,422.24
Shares Outstanding (M)64.6364.6364.63
Fair Value$457.93$479.38$501.63
Upside / Downside990.32%1,041.38%1,094.35%

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