Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

TECO Electric & Machinery Co., Ltd. (1504.TW)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$54.94 - $132.26$81.45
Multi-Stage$41.74 - $45.43$43.56
Blended Fair Value$62.50
Current Price$95.10
Upside-34.28%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS23.00%8.51%2.361.521.371.170.910.840.820.840.761.04
YoY Growth--55.39%11.11%17.39%28.19%8.35%2.82%-2.27%10.00%-27.27%0.00%
Dividend Yield--4.82%2.70%3.22%3.63%2.81%3.48%3.85%3.38%2.46%3.98%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,380.34
(-) Cash Dividends Paid (M)4,729.66
(=) Cash Retained (M)650.67
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,076.07672.54403.53
Cash Retained (M)650.67650.67650.67
(-) Cash Required (M)-1,076.07-672.54-403.53
(=) Excess Retained (M)-425.39-21.87247.15
(/) Shares Outstanding (M)2,110.422,110.422,110.42
(=) Excess Retained per Share-0.20-0.010.12
LTM Dividend per Share2.242.242.24
(+) Excess Retained per Share-0.20-0.010.12
(=) Adjusted Dividend2.042.232.36
WACC / Discount Rate9.42%9.42%9.42%
Growth Rate5.50%6.50%7.50%
Fair Value$54.94$81.45$132.26
Upside / Downside-42.23%-14.35%39.07%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,380.345,730.066,102.516,499.186,921.627,371.537,592.67
Payout Ratio87.91%88.33%88.74%89.16%89.58%90.00%92.50%
Projected Dividends (M)4,729.665,061.085,415.615,794.836,200.486,634.387,023.22

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.42%9.42%9.42%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)4,582.084,625.514,668.94
Year 2 PV (M)4,439.004,523.554,608.89
Year 3 PV (M)4,300.294,423.734,549.52
Year 4 PV (M)4,165.824,326.034,490.81
Year 5 PV (M)4,035.474,230.394,432.76
PV of Terminal Value (M)66,575.2069,790.8173,129.48
Equity Value (M)88,097.8591,920.0195,880.41
Shares Outstanding (M)2,110.422,110.422,110.42
Fair Value$41.74$43.56$45.43
Upside / Downside-56.11%-54.20%-52.23%

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