Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

NEC Corporation (6701.T)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$3,218.53 - $6,721.77$4,543.97
Multi-Stage$2,542.48 - $2,779.56$2,658.86
Blended Fair Value$3,601.42
Current Price$4,739.00
Upside-24.00%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS13.79%12.85%26.0223.0021.4020.4515.9813.6411.6911.6911.707.78
YoY Growth--13.14%7.48%4.63%28.00%17.16%16.62%0.00%-0.04%50.39%0.10%
Dividend Yield--0.62%0.87%1.54%1.94%1.40%1.32%1.36%1.92%1.96%1.64%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)234,553.00
(-) Cash Dividends Paid (M)37,356.00
(=) Cash Retained (M)197,197.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)46,910.6029,319.1317,591.48
Cash Retained (M)197,197.00197,197.00197,197.00
(-) Cash Required (M)-46,910.60-29,319.13-17,591.48
(=) Excess Retained (M)150,286.40167,877.88179,605.53
(/) Shares Outstanding (M)1,332.711,332.711,332.71
(=) Excess Retained per Share112.77125.97134.77
LTM Dividend per Share28.0328.0328.03
(+) Excess Retained per Share112.77125.97134.77
(=) Adjusted Dividend140.80154.00162.80
WACC / Discount Rate9.49%9.49%9.49%
Growth Rate4.91%5.91%6.91%
Fair Value$3,218.53$4,543.97$6,721.77
Upside / Downside-32.08%-4.12%41.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)234,553.00248,404.67263,074.35278,610.36295,063.86312,489.03321,863.70
Payout Ratio15.93%30.74%45.56%60.37%75.19%90.00%92.50%
Projected Dividends (M)37,356.0076,362.50119,845.83168,198.71221,844.63281,240.13297,723.92

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.49%9.49%9.49%
Growth Rate4.91%5.91%6.91%
Year 1 PV (M)69,082.2769,740.7970,399.31
Year 2 PV (M)98,083.4799,962.33101,859.00
Year 3 PV (M)124,532.30128,127.63131,791.49
Year 4 PV (M)148,591.76154,339.02160,251.42
Year 5 PV (M)170,415.68178,694.35187,291.68
PV of Terminal Value (M)2,777,689.312,912,627.473,052,759.56
Equity Value (M)3,388,394.813,543,491.593,704,352.46
Shares Outstanding (M)1,332.711,332.711,332.71
Fair Value$2,542.48$2,658.86$2,779.56
Upside / Downside-46.35%-43.89%-41.35%

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