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Wolverine World Wide, Inc. (WWW)

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

Valuation Snapshot

Stable Growth$5.22 - $7.07$6.17
Multi-Stage$10.17 - $11.20$10.68
Blended Fair Value$8.42
Current Price$27.88
Upside-69.80%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.66%3.08%0.400.400.400.410.410.410.350.280.290.30
YoY Growth---0.31%-0.61%-2.09%-0.30%0.00%17.48%24.35%-2.13%-3.69%1.67%
Dividend Yield--2.92%3.59%2.37%1.87%1.09%2.70%0.99%0.98%1.16%1.70%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)87.60
(-) Cash Dividends Paid (M)33.10
(=) Cash Retained (M)54.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)17.5210.956.57
Cash Retained (M)54.5054.5054.50
(-) Cash Required (M)-17.52-10.95-6.57
(=) Excess Retained (M)36.9843.5547.93
(/) Shares Outstanding (M)81.0381.0381.03
(=) Excess Retained per Share0.460.540.59
LTM Dividend per Share0.410.410.41
(+) Excess Retained per Share0.460.540.59
(=) Adjusted Dividend0.860.951.00
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-6.43%-5.43%-4.43%
Fair Value$5.22$6.17$7.07
Upside / Downside-81.28%-77.89%-74.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)87.6082.8478.3474.0970.0766.2668.25
Payout Ratio37.79%48.23%58.67%69.11%79.56%90.00%92.50%
Projected Dividends (M)33.1039.9545.9751.2155.7459.6463.13

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-6.43%-5.43%-4.43%
Year 1 PV (M)36.2436.6337.02
Year 2 PV (M)37.8238.6339.45
Year 3 PV (M)38.2239.4540.72
Year 4 PV (M)37.7339.3741.07
Year 5 PV (M)36.6238.6240.70
PV of Terminal Value (M)637.57672.37708.68
Equity Value (M)824.20865.08907.64
Shares Outstanding (M)81.0381.0381.03
Fair Value$10.17$10.68$11.20
Upside / Downside-63.51%-61.70%-59.82%

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