Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Rio Paranapanema Energia S.A. (GEPA3.SA)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$43.53 - $67.20$54.53
Multi-Stage$99.95 - $110.20$104.97
Blended Fair Value$79.75
Current Price$33.90
Upside135.25%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS13.79%-0.51%4.870.781.342.941.332.553.263.663.592.02
YoY Growth--522.36%-41.56%-54.45%121.69%-48.07%-21.62%-11.06%2.10%77.84%-60.66%
Dividend Yield--14.75%3.07%5.88%10.49%3.23%6.71%9.17%9.63%10.25%4.20%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)445.70
(-) Cash Dividends Paid (M)80.46
(=) Cash Retained (M)365.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)89.1455.7133.43
Cash Retained (M)365.24365.24365.24
(-) Cash Required (M)-89.14-55.71-33.43
(=) Excess Retained (M)276.10309.53331.81
(/) Shares Outstanding (M)94.4394.4394.43
(=) Excess Retained per Share2.923.283.51
LTM Dividend per Share0.850.850.85
(+) Excess Retained per Share2.923.283.51
(=) Adjusted Dividend3.784.134.37
WACC / Discount Rate6.33%6.33%6.33%
Growth Rate-2.16%-1.16%-0.16%
Fair Value$43.53$54.53$67.20
Upside / Downside28.42%60.85%98.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)445.70440.55435.46430.43425.46420.55433.16
Payout Ratio18.05%32.44%46.83%61.22%75.61%90.00%92.50%
Projected Dividends (M)80.46142.92203.93263.52321.69378.49400.68

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.33%6.33%6.33%
Growth Rate-2.16%-1.16%-0.16%
Year 1 PV (M)133.05134.41135.77
Year 2 PV (M)176.74180.37184.04
Year 3 PV (M)212.61219.19225.91
Year 4 PV (M)241.62251.65261.99
Year 5 PV (M)264.65278.45292.83
PV of Terminal Value (M)8,410.128,848.769,305.52
Equity Value (M)9,438.799,912.8410,406.06
Shares Outstanding (M)94.4394.4394.43
Fair Value$99.95$104.97$110.20
Upside / Downside194.84%209.65%225.06%

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