Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Offshore Oil Engineering Co.,Ltd (600583.SS)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$13.97 - $60.36$24.24
Multi-Stage$8.76 - $9.57$9.16
Blended Fair Value$16.70
Current Price$5.30
Upside215.05%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS24.08%3.93%0.150.100.080.070.060.050.050.100.250.23
YoY Growth--47.05%25.00%14.29%16.67%20.00%0.00%-50.00%-60.00%8.70%130.00%
Dividend Yield--2.57%1.50%1.30%1.63%1.32%1.02%0.74%1.61%3.26%3.19%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,021.73
(-) Cash Dividends Paid (M)888.86
(=) Cash Retained (M)1,132.87
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)404.35252.72151.63
Cash Retained (M)1,132.871,132.871,132.87
(-) Cash Required (M)-404.35-252.72-151.63
(=) Excess Retained (M)728.52880.15981.24
(/) Shares Outstanding (M)4,442.724,442.724,442.72
(=) Excess Retained per Share0.160.200.22
LTM Dividend per Share0.200.200.20
(+) Excess Retained per Share0.160.200.22
(=) Adjusted Dividend0.360.400.42
WACC / Discount Rate8.25%8.25%8.25%
Growth Rate5.50%6.50%7.50%
Fair Value$13.97$24.24$60.36
Upside / Downside163.55%357.30%1,038.92%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,021.732,153.142,293.092,442.142,600.882,769.942,853.04
Payout Ratio43.97%53.17%62.38%71.59%80.79%90.00%92.50%
Projected Dividends (M)888.861,144.871,430.411,748.242,101.332,492.952,639.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.25%8.25%8.25%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,047.691,057.621,067.55
Year 2 PV (M)1,197.881,220.701,243.73
Year 3 PV (M)1,339.771,378.231,417.42
Year 4 PV (M)1,473.671,530.341,588.64
Year 5 PV (M)1,599.911,677.181,757.42
PV of Terminal Value (M)32,262.7333,821.0335,438.97
Equity Value (M)38,921.6440,685.1042,513.72
Shares Outstanding (M)4,442.724,442.724,442.72
Fair Value$8.76$9.16$9.57
Upside / Downside65.30%72.79%80.55%

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