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Spectrum Brands Holdings, Inc. (SPB)

Company Dividend Discount ModelIndustry: Household & Personal ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$21.72 - $30.07$25.92
Multi-Stage$40.48 - $44.47$42.44
Blended Fair Value$34.18
Current Price$53.00
Upside-35.52%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-8.51%3.58%1.861.952.572.652.762.903.300.860.000.00
YoY Growth---4.74%-23.91%-3.06%-4.06%-4.92%-12.05%281.70%0.00%0.00%-100.00%
Dividend Yield--3.51%2.33%3.22%4.35%2.71%5.08%5.18%2.05%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)99.90
(-) Cash Dividends Paid (M)48.20
(=) Cash Retained (M)51.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)19.9812.497.49
Cash Retained (M)51.7051.7051.70
(-) Cash Required (M)-19.98-12.49-7.49
(=) Excess Retained (M)31.7239.2144.21
(/) Shares Outstanding (M)25.9025.9025.90
(=) Excess Retained per Share1.221.511.71
LTM Dividend per Share1.861.861.86
(+) Excess Retained per Share1.221.511.71
(=) Adjusted Dividend3.093.383.57
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-4.49%-3.49%-2.49%
Fair Value$21.72$25.92$30.07
Upside / Downside-59.02%-51.10%-43.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)99.9096.4193.0589.8086.6783.6586.16
Payout Ratio48.25%56.60%64.95%73.30%81.65%90.00%92.50%
Projected Dividends (M)48.2054.5760.4465.8370.7775.2879.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-4.49%-3.49%-2.49%
Year 1 PV (M)49.5150.0350.55
Year 2 PV (M)49.7550.7951.85
Year 3 PV (M)49.1650.7252.31
Year 4 PV (M)47.9549.9952.09
Year 5 PV (M)46.2848.7551.33
PV of Terminal Value (M)805.73848.80893.70
Equity Value (M)1,048.361,099.081,151.82
Shares Outstanding (M)25.9025.9025.90
Fair Value$40.48$42.44$44.47
Upside / Downside-23.63%-19.93%-16.09%

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