Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

BRF S.A. (BRFS3.SA)

Company Dividend Discount ModelIndustry: Packaged FoodsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$371.90 - $438.16$410.62
Multi-Stage$87.10 - $95.44$91.19
Blended Fair Value$250.91
Current Price$20.14
Upside1,145.82%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%4.66%0.700.000.000.000.000.000.000.000.720.55
YoY Growth--134,383.31%0.00%0.00%0.00%0.00%0.00%0.00%-100.00%32.30%22.47%
Dividend Yield--3.57%0.00%0.00%0.00%0.00%0.00%0.00%0.00%1.88%1.07%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,585.59
(-) Cash Dividends Paid (M)1,144.45
(=) Cash Retained (M)2,441.13
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)717.12448.20268.92
Cash Retained (M)2,441.132,441.132,441.13
(-) Cash Required (M)-717.12-448.20-268.92
(=) Excess Retained (M)1,724.021,992.932,172.21
(/) Shares Outstanding (M)1,627.441,627.441,627.44
(=) Excess Retained per Share1.061.221.33
LTM Dividend per Share0.700.700.70
(+) Excess Retained per Share1.061.221.33
(=) Adjusted Dividend1.761.932.04
WACC / Discount Rate5.62%5.62%5.62%
Growth Rate5.50%6.50%7.50%
Fair Value$371.90$410.62$438.16
Upside / Downside1,746.58%1,938.84%2,075.58%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,585.593,818.654,066.864,331.214,612.734,912.565,059.94
Payout Ratio31.92%43.53%55.15%66.77%78.38%90.00%92.50%
Projected Dividends (M)1,144.451,662.432,242.912,891.833,615.634,421.314,680.44

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.62%5.62%5.62%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,559.241,574.021,588.80
Year 2 PV (M)1,973.112,010.702,048.63
Year 3 PV (M)2,386.072,454.562,524.36
Year 4 PV (M)2,798.112,905.723,016.40
Year 5 PV (M)3,209.243,364.243,525.18
PV of Terminal Value (M)129,831.96136,102.90142,613.83
Equity Value (M)141,757.73148,412.14155,317.20
Shares Outstanding (M)1,627.441,627.441,627.44
Fair Value$87.10$91.19$95.44
Upside / Downside332.50%352.80%373.86%

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