Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Weaver Network Technology Co., Ltd. (603039.SS)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$17.34 - $40.15$25.38
Multi-Stage$12.28 - $13.42$12.84
Blended Fair Value$19.11
Current Price$57.25
Upside-66.62%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS30.46%0.00%0.220.150.150.130.090.060.040.040.000.00
YoY Growth--50.99%-0.21%18.29%43.23%48.04%47.87%3.90%0.00%0.00%0.00%
Dividend Yield--0.33%0.37%0.20%0.24%0.12%0.13%0.09%0.13%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)216.73
(-) Cash Dividends Paid (M)38.71
(=) Cash Retained (M)178.02
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)43.3527.0916.25
Cash Retained (M)178.02178.02178.02
(-) Cash Required (M)-43.35-27.09-16.25
(=) Excess Retained (M)134.67150.93161.77
(/) Shares Outstanding (M)259.08259.08259.08
(=) Excess Retained per Share0.520.580.62
LTM Dividend per Share0.150.150.15
(+) Excess Retained per Share0.520.580.62
(=) Adjusted Dividend0.670.730.77
WACC / Discount Rate9.57%9.57%9.57%
Growth Rate5.50%6.50%7.50%
Fair Value$17.34$25.38$40.15
Upside / Downside-69.71%-55.67%-29.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)216.73230.82245.82261.80278.81296.94305.85
Payout Ratio17.86%32.29%46.72%61.14%75.57%90.00%92.50%
Projected Dividends (M)38.7174.53114.84160.07210.71267.24282.91

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.57%9.57%9.57%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)67.3868.0268.66
Year 2 PV (M)93.8695.6597.45
Year 3 PV (M)118.29121.68125.14
Year 4 PV (M)140.76146.18151.75
Year 5 PV (M)161.41169.20177.30
PV of Terminal Value (M)2,599.992,725.572,855.96
Equity Value (M)3,181.693,326.303,476.26
Shares Outstanding (M)259.08259.08259.08
Fair Value$12.28$12.84$13.42
Upside / Downside-78.55%-77.57%-76.56%

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