Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Fresh Del Monte Produce Inc. (FDP)

Company Dividend Discount ModelIndustry: Agricultural Farm ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$30.50 - $64.58$43.27
Multi-Stage$32.57 - $35.61$34.06
Blended Fair Value$38.67
Current Price$35.03
Upside10.39%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS48.14%5.53%0.990.750.600.490.300.140.600.620.590.54
YoY Growth--33.15%25.09%21.10%65.73%113.43%-76.90%-3.65%6.74%7.63%-6.09%
Dividend Yield--3.27%2.88%1.98%1.86%1.03%0.48%2.23%1.38%0.99%1.27%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)80.20
(-) Cash Dividends Paid (M)55.00
(=) Cash Retained (M)25.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)16.0410.036.02
Cash Retained (M)25.2025.2025.20
(-) Cash Required (M)-16.04-10.03-6.02
(=) Excess Retained (M)9.1615.1819.19
(/) Shares Outstanding (M)48.1748.1748.17
(=) Excess Retained per Share0.190.320.40
LTM Dividend per Share1.141.141.14
(+) Excess Retained per Share0.190.320.40
(=) Adjusted Dividend1.331.461.54
WACC / Discount Rate7.81%7.81%7.81%
Growth Rate3.30%4.30%5.30%
Fair Value$30.50$43.27$64.58
Upside / Downside-12.93%23.54%84.36%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)80.2083.6587.2591.0094.9198.99101.96
Payout Ratio68.58%72.86%77.15%81.43%85.72%90.00%92.50%
Projected Dividends (M)55.0060.9567.3174.1081.3589.0994.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.81%7.81%7.81%
Growth Rate3.30%4.30%5.30%
Year 1 PV (M)55.9956.5357.08
Year 2 PV (M)56.8057.9159.02
Year 3 PV (M)57.4559.1360.85
Year 4 PV (M)57.9460.2262.56
Year 5 PV (M)58.2961.1764.16
PV of Terminal Value (M)1,282.661,345.961,411.73
Equity Value (M)1,569.141,640.921,715.40
Shares Outstanding (M)48.1748.1748.17
Fair Value$32.57$34.06$35.61
Upside / Downside-7.02%-2.76%1.65%

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