Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Aguas Andinas S.A. (AGUAS-A.SN)

Company Dividend Discount ModelIndustry: Regulated WaterSector: Utilities

Valuation Snapshot

Stable Growth$190.31 - $295.56$238.99
Multi-Stage$450.29 - $495.24$472.33
Blended Fair Value$355.66
Current Price$340.00
Upside4.61%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS-6.65%0.00%14.7314.8112.4517.6817.3620.7723.4323.1222.010.00
YoY Growth---0.56%18.96%-29.57%1.83%-16.43%-11.33%1.31%5.06%0.00%0.00%
Dividend Yield--4.30%5.22%5.53%10.52%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)123,600.39
(-) Cash Dividends Paid (M)87,025.34
(=) Cash Retained (M)36,575.05
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)24,720.0815,450.059,270.03
Cash Retained (M)36,575.0536,575.0536,575.05
(-) Cash Required (M)-24,720.08-15,450.05-9,270.03
(=) Excess Retained (M)11,854.9721,125.0027,305.02
(/) Shares Outstanding (M)6,118.016,118.016,118.01
(=) Excess Retained per Share1.943.454.46
LTM Dividend per Share14.2214.2214.22
(+) Excess Retained per Share1.943.454.46
(=) Adjusted Dividend16.1617.6818.69
WACC / Discount Rate6.32%6.32%6.32%
Growth Rate-2.00%-1.00%0.00%
Fair Value$190.31$238.99$295.56
Upside / Downside-44.03%-29.71%-13.07%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)123,600.39122,364.39121,140.75119,929.34118,730.05117,542.74121,069.03
Payout Ratio70.41%74.33%78.25%82.16%86.08%90.00%92.50%
Projected Dividends (M)87,025.3490,949.6694,786.7998,538.08102,204.87105,788.47111,988.85

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.32%6.32%6.32%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)84,677.0285,541.0786,405.12
Year 2 PV (M)82,163.0983,848.4485,550.90
Year 3 PV (M)79,523.8781,983.2084,492.71
Year 4 PV (M)76,794.3879,977.1583,257.84
Year 5 PV (M)74,004.9377,858.5381,871.03
PV of Terminal Value (M)2,357,720.312,480,492.282,608,326.22
Equity Value (M)2,754,883.592,889,700.663,029,903.82
Shares Outstanding (M)6,118.016,118.016,118.01
Fair Value$450.29$472.33$495.24
Upside / Downside32.44%38.92%45.66%

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