Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Arakawa Chemical Industries, Ltd. (4968.T)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$1,270.87 - $2,355.96$1,716.08
Multi-Stage$2,920.59 - $3,213.25$3,064.08
Blended Fair Value$2,390.08
Current Price$1,096.00
Upside118.07%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS1.11%6.13%47.9947.9947.9947.9943.9545.4240.5342.6432.0630.80
YoY Growth--0.00%0.00%0.00%9.17%-3.22%12.06%-4.96%33.02%4.09%16.38%
Dividend Yield--4.68%3.97%4.81%4.84%3.69%3.67%2.76%2.40%1.67%3.27%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,734.00
(-) Cash Dividends Paid (M)971.00
(=) Cash Retained (M)763.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)346.80216.75130.05
Cash Retained (M)763.00763.00763.00
(-) Cash Required (M)-346.80-216.75-130.05
(=) Excess Retained (M)416.20546.25632.95
(/) Shares Outstanding (M)19.8419.8419.84
(=) Excess Retained per Share20.9827.5331.90
LTM Dividend per Share48.9448.9448.94
(+) Excess Retained per Share20.9827.5331.90
(=) Adjusted Dividend69.9276.4880.85
WACC / Discount Rate5.41%5.41%5.41%
Growth Rate-0.08%0.92%1.92%
Fair Value$1,270.87$1,716.08$2,355.96
Upside / Downside15.96%56.58%114.96%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,734.001,749.911,765.961,782.171,798.521,815.021,869.47
Payout Ratio56.00%62.80%69.60%76.40%83.20%90.00%92.50%
Projected Dividends (M)971.001,098.911,229.091,361.561,496.361,633.511,729.26

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.41%5.41%5.41%
Growth Rate-0.08%0.92%1.92%
Year 1 PV (M)1,032.131,042.461,052.79
Year 2 PV (M)1,084.251,106.061,128.09
Year 3 PV (M)1,128.121,162.331,197.23
Year 4 PV (M)1,164.471,211.791,260.54
Year 5 PV (M)1,193.951,254.911,318.33
PV of Terminal Value (M)52,337.9455,009.9557,790.00
Equity Value (M)57,940.8660,787.5063,746.97
Shares Outstanding (M)19.8419.8419.84
Fair Value$2,920.59$3,064.08$3,213.25
Upside / Downside166.48%179.57%193.18%

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