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Romi S.A. (ROMI3.SA)

Company Dividend Discount ModelIndustry: Industrial - DistributionSector: Industrials

Valuation Snapshot

Stable Growth$88.05 - $203.83$191.02
Multi-Stage$30.92 - $33.80$32.34
Blended Fair Value$111.68
Current Price$7.84
Upside1,324.48%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.80%46.75%0.621.060.751.400.950.490.230.000.020.02
YoY Growth---41.33%40.91%-46.17%46.65%93.70%110.96%6,474.02%-77.68%-31.25%72.15%
Dividend Yield--6.87%9.11%5.33%15.09%5.36%12.83%5.04%0.09%1.10%3.93%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)95.75
(-) Cash Dividends Paid (M)70.15
(=) Cash Retained (M)25.61
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)19.1511.977.18
Cash Retained (M)25.6125.6125.61
(-) Cash Required (M)-19.15-11.97-7.18
(=) Excess Retained (M)6.4613.6418.42
(/) Shares Outstanding (M)93.4293.4293.42
(=) Excess Retained per Share0.070.150.20
LTM Dividend per Share0.750.750.75
(+) Excess Retained per Share0.070.150.20
(=) Adjusted Dividend0.820.900.95
WACC / Discount Rate6.48%6.48%6.48%
Growth Rate5.50%6.50%7.50%
Fair Value$88.05$191.02$203.83
Upside / Downside1,023.11%2,336.52%2,499.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)95.75101.98108.60115.66123.18131.19135.12
Payout Ratio73.26%76.61%79.95%83.30%86.65%90.00%92.50%
Projected Dividends (M)70.1578.1286.8396.35106.74118.07124.99

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.48%6.48%6.48%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)72.6873.3674.05
Year 2 PV (M)75.1576.5878.03
Year 3 PV (M)77.5879.8082.07
Year 4 PV (M)79.9583.0386.19
Year 5 PV (M)82.2786.2590.37
PV of Terminal Value (M)2,501.022,621.822,747.25
Equity Value (M)2,888.653,020.853,157.96
Shares Outstanding (M)93.4293.4293.42
Fair Value$30.92$32.34$33.80
Upside / Downside294.39%312.44%331.16%

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