Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

3R Petroleum Óleo e Gás S.A. (RRRP3.SA)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$32.43 - $49.14$40.29
Multi-Stage$64.50 - $71.09$67.73
Blended Fair Value$54.01
Current Price$17.71
Upside204.98%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.230.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.27%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)1,568.81
(-) Cash Dividends Paid (M)92.57
(=) Cash Retained (M)1,476.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)313.76196.10117.66
Cash Retained (M)1,476.241,476.241,476.24
(-) Cash Required (M)-313.76-196.10-117.66
(=) Excess Retained (M)1,162.481,280.141,358.58
(/) Shares Outstanding (M)419.70419.70419.70
(=) Excess Retained per Share2.773.053.24
LTM Dividend per Share0.220.220.22
(+) Excess Retained per Share2.773.053.24
(=) Adjusted Dividend2.993.273.46
WACC / Discount Rate7.04%7.04%7.04%
Growth Rate-2.00%-1.00%0.00%
Fair Value$32.43$40.29$49.14
Upside / Downside83.13%127.53%177.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,568.811,553.121,537.591,522.211,506.991,491.921,536.68
Payout Ratio5.90%22.72%39.54%56.36%73.18%90.00%92.50%
Projected Dividends (M)92.57352.87607.97857.921,102.821,342.731,421.43

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.04%7.04%7.04%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)326.35329.68333.01
Year 2 PV (M)520.00530.67541.44
Year 3 PV (M)678.63699.62721.03
Year 4 PV (M)806.77840.21874.68
Year 5 PV (M)908.44955.751,005.00
PV of Terminal Value (M)23,829.3525,070.2026,362.21
Equity Value (M)27,069.5528,426.1329,837.38
Shares Outstanding (M)419.70419.70419.70
Fair Value$64.50$67.73$71.09
Upside / Downside264.19%282.44%301.42%

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