Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

A&W Revenue Royalties Income Fund (AW-UN.TO)

Company Dividend Discount ModelIndustry: RestaurantsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$35.91 - $74.87$50.67
Multi-Stage$33.87 - $36.90$35.36
Blended Fair Value$43.02
Current Price$28.52
Upside50.82%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS8.19%6.27%1.921.871.631.381.531.301.241.171.081.06
YoY Growth--2.68%15.02%17.96%-10.17%18.44%4.59%6.00%8.24%2.00%1.22%
Dividend Yield--6.40%5.03%3.76%3.85%6.36%3.33%3.96%2.93%3.72%3.79%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)31.87
(-) Cash Dividends Paid (M)29.61
(=) Cash Retained (M)2.26
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.373.982.39
Cash Retained (M)2.262.262.26
(-) Cash Required (M)-6.37-3.98-2.39
(=) Excess Retained (M)-4.11-1.72-0.13
(/) Shares Outstanding (M)16.0916.0916.09
(=) Excess Retained per Share-0.26-0.11-0.01
LTM Dividend per Share1.841.841.84
(+) Excess Retained per Share-0.26-0.11-0.01
(=) Adjusted Dividend1.581.731.83
WACC / Discount Rate8.87%8.87%8.87%
Growth Rate4.27%5.27%6.27%
Fair Value$35.91$50.67$74.87
Upside / Downside25.92%77.67%162.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)31.8733.5535.3237.1839.1341.2042.43
Payout Ratio92.91%92.32%91.74%91.16%90.58%90.00%92.50%
Projected Dividends (M)29.6130.9732.4033.8935.4537.0839.25

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.87%8.87%8.87%
Growth Rate4.27%5.27%6.27%
Year 1 PV (M)28.1828.4528.72
Year 2 PV (M)26.8227.3427.86
Year 3 PV (M)25.5226.2727.02
Year 4 PV (M)24.2925.2426.21
Year 5 PV (M)23.1124.2425.42
PV of Terminal Value (M)417.11437.50458.68
Equity Value (M)545.05569.04593.91
Shares Outstanding (M)16.0916.0916.09
Fair Value$33.87$35.36$36.90
Upside / Downside18.75%23.98%29.40%

High-Yield Dividend Screener

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