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Hello Group Inc. (1MO.F)

Company Dividend Discount ModelIndustry: Internet Content & InformationSector: Communication Services

Valuation Snapshot

Stable Growth$22.29 - $30.98$26.65
Multi-Stage$53.87 - $59.44$56.60
Blended Fair Value$41.62
Current Price$59.06
Upside-29.52%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.97%0.00%3.314.423.883.945.194.050.000.000.000.00
YoY Growth---25.23%13.92%-1.38%-24.13%28.11%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--7.14%9.49%6.13%9.93%5.34%2.63%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)854.39
(-) Cash Dividends Paid (M)346.18
(=) Cash Retained (M)508.21
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)170.88106.8064.08
Cash Retained (M)508.21508.21508.21
(-) Cash Required (M)-170.88-106.80-64.08
(=) Excess Retained (M)337.33401.41444.13
(/) Shares Outstanding (M)216.64216.64216.64
(=) Excess Retained per Share1.561.852.05
LTM Dividend per Share1.601.601.60
(+) Excess Retained per Share1.561.852.05
(=) Adjusted Dividend3.163.453.65
WACC / Discount Rate7.33%7.33%7.33%
Growth Rate-5.97%-4.97%-3.97%
Fair Value$22.29$26.65$30.98
Upside / Downside-62.25%-54.88%-47.54%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)854.39811.89771.50733.12696.65661.99681.85
Payout Ratio40.52%50.41%60.31%70.21%80.10%90.00%92.50%
Projected Dividends (M)346.18409.31465.30514.70558.04595.79630.71

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.33%7.33%7.33%
Growth Rate-5.97%-4.97%-3.97%
Year 1 PV (M)377.34381.35385.36
Year 2 PV (M)395.44403.90412.45
Year 3 PV (M)403.26416.27429.55
Year 4 PV (M)403.06420.49438.47
Year 5 PV (M)396.72418.27440.74
PV of Terminal Value (M)9,695.1910,221.8410,771.12
Equity Value (M)11,671.0112,262.1012,877.69
Shares Outstanding (M)216.64216.64216.64
Fair Value$53.87$56.60$59.44
Upside / Downside-8.78%-4.16%0.65%

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