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Cairn Homes plc (C5H.IR)

Company Dividend Discount ModelIndustry: Residential ConstructionSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$15.90 - $64.66$41.77
Multi-Stage$7.87 - $8.60$8.23
Blended Fair Value$25.00
Current Price$2.14
Upside1,068.10%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS17.83%0.00%0.070.060.060.030.000.030.000.000.000.00
YoY Growth--6.74%2.95%104.00%0.00%-100.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.96%4.90%7.24%2.73%0.00%2.41%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)210.57
(-) Cash Dividends Paid (M)92.98
(=) Cash Retained (M)117.59
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)42.1126.3215.79
Cash Retained (M)117.59117.59117.59
(-) Cash Required (M)-42.11-26.32-15.79
(=) Excess Retained (M)75.4891.27101.80
(/) Shares Outstanding (M)647.61647.61647.61
(=) Excess Retained per Share0.120.140.16
LTM Dividend per Share0.140.140.14
(+) Excess Retained per Share0.120.140.16
(=) Adjusted Dividend0.260.280.30
WACC / Discount Rate7.23%7.23%7.23%
Growth Rate5.50%6.50%7.50%
Fair Value$15.90$41.77$64.66
Upside / Downside643.22%1,851.78%2,921.71%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)210.57224.26238.83254.36270.89288.50297.15
Payout Ratio44.15%53.32%62.49%71.66%80.83%90.00%92.50%
Projected Dividends (M)92.98119.58149.25182.28218.96259.65274.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.23%7.23%7.23%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)110.48111.52112.57
Year 2 PV (M)127.39129.82132.27
Year 3 PV (M)143.73147.86152.06
Year 4 PV (M)159.51165.65171.96
Year 5 PV (M)174.75183.19191.95
PV of Terminal Value (M)4,378.024,589.484,809.03
Equity Value (M)5,093.885,327.515,569.84
Shares Outstanding (M)647.61647.61647.61
Fair Value$7.87$8.23$8.60
Upside / Downside267.56%284.41%301.90%

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