Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Patterson Companies, Inc. (PDCO)

Company Dividend Discount ModelIndustry: Medical - DistributionSector: Healthcare

Valuation Snapshot

Stable Growth$24.86 - $48.37$34.19
Multi-Stage$39.45 - $43.28$41.33
Blended Fair Value$37.76
Current Price$30.93
Upside22.08%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.23%1.39%1.101.141.130.841.131.121.111.081.020.92
YoY Growth---2.97%0.23%34.49%-25.15%0.98%0.27%3.43%5.86%10.81%-4.55%
Dividend Yield--4.19%3.49%3.65%2.52%4.50%5.69%4.68%2.55%2.06%1.90%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)138.78
(-) Cash Dividends Paid (M)92.48
(=) Cash Retained (M)46.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)27.7617.3510.41
Cash Retained (M)46.3046.3046.30
(-) Cash Required (M)-27.76-17.35-10.41
(=) Excess Retained (M)18.5428.9535.89
(/) Shares Outstanding (M)89.1789.1789.17
(=) Excess Retained per Share0.210.320.40
LTM Dividend per Share1.041.041.04
(+) Excess Retained per Share0.210.320.40
(=) Adjusted Dividend1.251.361.44
WACC / Discount Rate6.41%6.41%6.41%
Growth Rate1.34%2.34%3.34%
Fair Value$24.86$34.19$48.37
Upside / Downside-19.63%10.55%56.38%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)138.78142.02145.33148.73152.20155.75160.43
Payout Ratio66.64%71.31%75.98%80.66%85.33%90.00%92.50%
Projected Dividends (M)92.48101.27110.43119.96129.87140.18148.39

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.41%6.41%6.41%
Growth Rate1.34%2.34%3.34%
Year 1 PV (M)94.2495.1796.10
Year 2 PV (M)95.6397.5299.44
Year 3 PV (M)96.6699.55102.50
Year 4 PV (M)97.39101.29105.31
Year 5 PV (M)97.82102.74107.86
PV of Terminal Value (M)3,035.913,188.693,347.56
Equity Value (M)3,517.653,684.973,858.77
Shares Outstanding (M)89.1789.1789.17
Fair Value$39.45$41.33$43.28
Upside / Downside27.55%33.61%39.92%

High-Yield Dividend Screener

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