Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Arabian Company for Agricultural and Industrial Investment (2287.SR)

Company Dividend Discount ModelIndustry: Packaged FoodsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$10.55 - $16.38$13.25
Multi-Stage$24.43 - $26.90$25.64
Blended Fair Value$19.44
Current Price$40.10
Upside-51.51%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%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)33.65
(-) Cash Dividends Paid (M)15.00
(=) Cash Retained (M)18.65
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.734.212.52
Cash Retained (M)18.6518.6518.65
(-) Cash Required (M)-6.73-4.21-2.52
(=) Excess Retained (M)11.9214.4416.13
(/) Shares Outstanding (M)30.0030.0030.00
(=) Excess Retained per Share0.400.480.54
LTM Dividend per Share0.500.500.50
(+) Excess Retained per Share0.400.480.54
(=) Adjusted Dividend0.900.981.04
WACC / Discount Rate6.33%6.33%6.33%
Growth Rate-2.00%-1.00%0.00%
Fair Value$10.55$13.25$16.38
Upside / Downside-73.68%-66.96%-59.14%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)33.6533.3132.9832.6532.3232.0032.96
Payout Ratio44.58%53.66%62.75%71.83%80.92%90.00%92.50%
Projected Dividends (M)15.0017.8820.6923.4526.1528.8030.49

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.33%6.33%6.33%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)16.6416.8116.98
Year 2 PV (M)17.9318.3018.67
Year 3 PV (M)18.9219.5120.10
Year 4 PV (M)19.6420.4621.30
Year 5 PV (M)20.1421.1922.28
PV of Terminal Value (M)639.61672.92707.60
Equity Value (M)732.89769.18806.93
Shares Outstanding (M)30.0030.0030.00
Fair Value$24.43$25.64$26.90
Upside / Downside-39.08%-36.06%-32.92%

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