Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Fresh Del Monte Produce Inc. (FDP)

Company Dividend Discount ModelIndustry: Agricultural Farm ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$30.72 - $65.42$43.67
Multi-Stage$32.80 - $35.86$34.30
Blended Fair Value$38.99
Current Price$35.03
Upside11.29%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS48.14%5.53%0.990.750.600.490.300.140.600.620.590.54
YoY Growth--33.15%25.09%21.10%65.73%113.43%-76.90%-3.65%6.74%7.63%-6.09%
Dividend Yield--3.27%2.88%1.98%1.86%1.03%0.48%2.23%1.38%0.99%1.27%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)80.20
(-) Cash Dividends Paid (M)55.00
(=) Cash Retained (M)25.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)16.0410.036.02
Cash Retained (M)25.2025.2025.20
(-) Cash Required (M)-16.04-10.03-6.02
(=) Excess Retained (M)9.1615.1819.19
(/) Shares Outstanding (M)48.1748.1748.17
(=) Excess Retained per Share0.190.320.40
LTM Dividend per Share1.141.141.14
(+) Excess Retained per Share0.190.320.40
(=) Adjusted Dividend1.331.461.54
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate3.30%4.30%5.30%
Fair Value$30.72$43.67$65.42
Upside / Downside-12.31%24.68%86.75%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)80.2083.6587.2591.0094.9198.99101.96
Payout Ratio68.58%72.86%77.15%81.43%85.72%90.00%92.50%
Projected Dividends (M)55.0060.9567.3174.1081.3589.0994.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate3.30%4.30%5.30%
Year 1 PV (M)56.0156.5557.09
Year 2 PV (M)56.8457.9459.06
Year 3 PV (M)57.5059.1960.90
Year 4 PV (M)58.0160.2962.63
Year 5 PV (M)58.3861.2664.25
PV of Terminal Value (M)1,293.221,357.041,423.35
Equity Value (M)1,579.951,652.271,727.30
Shares Outstanding (M)48.1748.1748.17
Fair Value$32.80$34.30$35.86
Upside / Downside-6.37%-2.09%2.36%

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