Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Cia de Ferro Ligas da Bahia - FERBASA (FESA3.SA)

Company Dividend Discount ModelIndustry: SteelSector: Basic Materials

Valuation Snapshot

Stable Growth$31.38 - $121.92$88.07
Multi-Stage$15.50 - $16.93$16.20
Blended Fair Value$52.14
Current Price$6.45
Upside708.31%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.70%18.60%0.500.641.280.300.140.330.310.410.010.21
YoY Growth---23.15%-49.66%329.19%113.39%-57.17%5.34%-24.87%4,355.92%-95.66%136.98%
Dividend Yield--6.82%7.58%9.66%2.51%1.64%10.07%5.75%7.84%0.35%11.34%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)214.89
(-) Cash Dividends Paid (M)164.62
(=) Cash Retained (M)50.26
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)42.9826.8616.12
Cash Retained (M)50.2650.2650.26
(-) Cash Required (M)-42.98-26.86-16.12
(=) Excess Retained (M)7.2823.4034.14
(/) Shares Outstanding (M)350.51350.51350.51
(=) Excess Retained per Share0.020.070.10
LTM Dividend per Share0.470.470.47
(+) Excess Retained per Share0.020.070.10
(=) Adjusted Dividend0.490.540.57
WACC / Discount Rate7.15%7.15%7.15%
Growth Rate5.50%6.50%7.50%
Fair Value$31.38$88.07$121.92
Upside / Downside386.57%1,265.39%1,790.25%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)214.89228.85243.73259.57276.44294.41303.24
Payout Ratio76.61%79.29%81.97%84.64%87.32%90.00%92.50%
Projected Dividends (M)164.62181.45199.77219.71241.40264.97280.50

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.15%7.15%7.15%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)167.76169.35170.94
Year 2 PV (M)170.75174.01177.29
Year 3 PV (M)173.62178.60183.68
Year 4 PV (M)176.36183.14190.11
Year 5 PV (M)178.97187.61196.59
PV of Terminal Value (M)4,566.694,787.265,016.27
Equity Value (M)5,434.145,679.975,934.89
Shares Outstanding (M)350.51350.51350.51
Fair Value$15.50$16.20$16.93
Upside / Downside140.36%151.23%162.51%

High-Yield Dividend Screener

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