Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Nippon Signal Co., Ltd. (6741.T)

Company Dividend Discount ModelIndustry: RailroadsSector: Industrials

Valuation Snapshot

Stable Growth$21,656.69 - $25,530.90$23,918.93
Multi-Stage$20,935.13 - $23,047.84$21,971.11
Blended Fair Value$22,945.02
Current Price$1,217.00
Upside1,785.38%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS5.48%6.26%33.9426.9526.9426.9425.9425.9925.1124.3224.0222.94
YoY Growth--25.94%0.06%0.00%3.83%-0.19%3.51%3.23%1.27%4.68%24.11%
Dividend Yield--3.15%2.59%2.51%2.74%2.83%2.29%1.99%2.26%2.32%2.89%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)8,266.00
(-) Cash Dividends Paid (M)2,681.00
(=) Cash Retained (M)5,585.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,653.201,033.25619.95
Cash Retained (M)5,585.005,585.005,585.00
(-) Cash Required (M)-1,653.20-1,033.25-619.95
(=) Excess Retained (M)3,931.804,551.754,965.05
(/) Shares Outstanding (M)62.3762.3762.37
(=) Excess Retained per Share63.0472.9879.60
LTM Dividend per Share42.9842.9842.98
(+) Excess Retained per Share63.0472.9879.60
(=) Adjusted Dividend106.02115.96122.59
WACC / Discount Rate-7.14%-7.14%-7.14%
Growth Rate2.13%3.13%4.13%
Fair Value$21,656.69$23,918.93$25,530.90
Upside / Downside1,679.51%1,865.40%1,997.86%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)8,266.008,524.878,791.849,067.179,351.139,643.979,933.29
Payout Ratio32.43%43.95%55.46%66.97%78.49%90.00%92.50%
Projected Dividends (M)2,681.003,746.444,875.996,072.617,339.408,679.589,188.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate-7.14%-7.14%-7.14%
Growth Rate2.13%3.13%4.13%
Year 1 PV (M)3,995.344,034.464,073.58
Year 2 PV (M)5,545.385,654.515,764.69
Year 3 PV (M)7,365.097,583.567,806.30
Year 4 PV (M)9,492.879,870.1610,258.58
Year 5 PV (M)11,972.0812,569.7813,191.12
PV of Terminal Value (M)1,267,377.901,330,651.141,396,426.63
Equity Value (M)1,305,748.671,370,363.601,437,520.90
Shares Outstanding (M)62.3762.3762.37
Fair Value$20,935.13$21,971.11$23,047.84
Upside / Downside1,620.22%1,705.35%1,793.82%

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