Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

eMnet Japan.co.ltd. (7036.T)

Company Dividend Discount ModelIndustry: Advertising AgenciesSector: Communication Services

Valuation Snapshot

Stable Growth$387.70 - $652.70$503.72
Multi-Stage$1,470.04 - $1,620.40$1,543.73
Blended Fair Value$1,023.73
Current Price$985.00
Upside3.93%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS24.48%0.00%31.8031.6226.6617.0410.7710.640.000.000.000.00
YoY Growth--0.55%18.60%56.45%58.17%1.28%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.44%2.91%1.90%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)128.14
(-) Cash Dividends Paid (M)123.00
(=) Cash Retained (M)5.14
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)25.6316.029.61
Cash Retained (M)5.145.145.14
(-) Cash Required (M)-25.63-16.02-9.61
(=) Excess Retained (M)-20.49-10.88-4.47
(/) Shares Outstanding (M)3.883.883.88
(=) Excess Retained per Share-5.29-2.81-1.15
LTM Dividend per Share31.7331.7331.73
(+) Excess Retained per Share-5.29-2.81-1.15
(=) Adjusted Dividend26.4528.9330.58
WACC / Discount Rate4.68%4.68%4.68%
Growth Rate-2.00%-1.00%0.00%
Fair Value$387.70$503.72$652.70
Upside / Downside-60.64%-48.86%-33.74%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)128.14126.86125.59124.33123.09121.86125.51
Payout Ratio95.99%94.79%93.59%92.40%91.20%90.00%92.50%
Projected Dividends (M)123.00120.25117.54114.88112.25109.67116.10

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.68%4.68%4.68%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)113.71114.87116.03
Year 2 PV (M)105.10107.26109.44
Year 3 PV (M)97.13100.13103.20
Year 4 PV (M)89.7593.4797.30
Year 5 PV (M)82.9187.2391.73
PV of Terminal Value (M)5,209.585,480.865,763.32
Equity Value (M)5,698.195,983.826,281.01
Shares Outstanding (M)3.883.883.88
Fair Value$1,470.04$1,543.73$1,620.40
Upside / Downside49.24%56.72%64.51%

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