Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Companhia de Saneamento de Minas Gerais (CSMG3.SA)

Company Dividend Discount ModelIndustry: Regulated WaterSector: Utilities

Valuation Snapshot

Stable Growth$600.64 - $707.65$663.17
Multi-Stage$197.34 - $216.35$206.67
Blended Fair Value$434.92
Current Price$34.49
Upside1,161.01%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS40.42%19.34%1.942.050.360.152.160.350.740.320.150.01
YoY Growth---5.39%471.06%137.29%-93.00%508.56%-51.88%133.31%113.66%1,361.08%-96.94%
Dividend Yield--9.81%9.53%2.28%1.10%14.30%2.60%3.58%1.97%1.00%0.17%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,350.71
(-) Cash Dividends Paid (M)502.62
(=) Cash Retained (M)848.09
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)270.14168.84101.30
Cash Retained (M)848.09848.09848.09
(-) Cash Required (M)-270.14-168.84-101.30
(=) Excess Retained (M)577.95679.25746.79
(/) Shares Outstanding (M)379.60379.60379.60
(=) Excess Retained per Share1.521.791.97
LTM Dividend per Share1.321.321.32
(+) Excess Retained per Share1.521.791.97
(=) Adjusted Dividend2.853.113.29
WACC / Discount Rate4.89%4.89%4.89%
Growth Rate5.50%6.50%7.50%
Fair Value$600.64$663.17$707.65
Upside / Downside1,641.48%1,822.80%1,951.76%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,350.711,438.511,532.011,631.591,737.641,850.591,906.11
Payout Ratio37.21%47.77%58.33%68.88%79.44%90.00%92.50%
Projected Dividends (M)502.62687.16893.571,123.911,380.421,665.531,763.15

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.89%4.89%4.89%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)648.99655.14661.29
Year 2 PV (M)797.05812.23827.55
Year 3 PV (M)946.81973.991,001.68
Year 4 PV (M)1,098.291,140.531,183.97
Year 5 PV (M)1,251.511,311.961,374.72
PV of Terminal Value (M)70,167.6873,556.8177,075.64
Equity Value (M)74,910.3378,450.6682,124.87
Shares Outstanding (M)379.60379.60379.60
Fair Value$197.34$206.67$216.35
Upside / Downside472.17%499.21%527.28%

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