Definitive Analysis
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Definitive Analysis

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IRadimed Corporation (IRMD)

Company Dividend Discount ModelIndustry: Medical - DevicesSector: Healthcare

Valuation Snapshot

Stable Growth$43.67 - $137.72$70.20
Multi-Stage$29.05 - $31.73$30.36
Blended Fair Value$50.28
Current Price$59.79
Upside-15.90%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%1.071.030.980.000.000.000.000.000.000.00
YoY Growth--3.44%5.29%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.03%2.40%2.49%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)21.18
(-) Cash Dividends Paid (M)8.39
(=) Cash Retained (M)12.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.242.651.59
Cash Retained (M)12.8012.8012.80
(-) Cash Required (M)-4.24-2.65-1.59
(=) Excess Retained (M)8.5610.1511.21
(/) Shares Outstanding (M)12.8212.8212.82
(=) Excess Retained per Share0.670.790.87
LTM Dividend per Share0.650.650.65
(+) Excess Retained per Share0.670.790.87
(=) Adjusted Dividend1.321.451.53
WACC / Discount Rate8.69%8.69%8.69%
Growth Rate5.50%6.50%7.50%
Fair Value$43.67$70.20$137.72
Upside / Downside-26.97%17.41%130.34%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)21.1822.5624.0325.5927.2529.0329.90
Payout Ratio39.59%49.67%59.75%69.84%79.92%90.00%92.50%
Projected Dividends (M)8.3911.2114.3617.8721.7826.1227.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.69%8.69%8.69%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)10.2110.3110.41
Year 2 PV (M)11.9312.1512.38
Year 3 PV (M)13.5313.9214.31
Year 4 PV (M)15.0315.6116.20
Year 5 PV (M)16.4317.2218.04
PV of Terminal Value (M)305.46320.21335.53
Equity Value (M)372.58389.41406.87
Shares Outstanding (M)12.8212.8212.82
Fair Value$29.05$30.36$31.73
Upside / Downside-51.41%-49.22%-46.94%

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