Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

AIC Inc. (3693.TWO)

Company Dividend Discount ModelIndustry: Computer HardwareSector: Technology

Valuation Snapshot

Stable Growth$108.44 - $152.23$130.20
Multi-Stage$167.58 - $183.24$175.26
Blended Fair Value$152.73
Current Price$238.00
Upside-35.83%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%8.745.241.310.610.000.000.000.000.000.00
YoY Growth--66.67%300.00%114.29%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.88%1.44%1.03%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)763.50
(-) Cash Dividends Paid (M)472.90
(=) Cash Retained (M)290.61
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)152.7095.4457.26
Cash Retained (M)290.61290.61290.61
(-) Cash Required (M)-152.70-95.44-57.26
(=) Excess Retained (M)137.91195.17233.34
(/) Shares Outstanding (M)44.0544.0544.05
(=) Excess Retained per Share3.134.435.30
LTM Dividend per Share10.7410.7410.74
(+) Excess Retained per Share3.134.435.30
(=) Adjusted Dividend13.8715.1716.03
WACC / Discount Rate10.53%10.53%10.53%
Growth Rate-2.00%-1.00%0.00%
Fair Value$108.44$130.20$152.23
Upside / Downside-54.44%-45.29%-36.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)763.50755.87748.31740.83733.42726.08747.87
Payout Ratio61.94%67.55%73.16%78.78%84.39%90.00%92.50%
Projected Dividends (M)472.90510.59547.48583.59618.91653.48691.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.53%10.53%10.53%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)457.28461.94466.61
Year 2 PV (M)439.12448.12457.22
Year 3 PV (M)419.20432.16445.39
Year 4 PV (M)398.15414.65431.66
Year 5 PV (M)376.49396.09416.51
PV of Terminal Value (M)5,291.825,567.385,854.30
Equity Value (M)7,382.067,720.368,071.69
Shares Outstanding (M)44.0544.0544.05
Fair Value$167.58$175.26$183.24
Upside / Downside-29.59%-26.36%-23.01%

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