Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Hwacheon Machinery Co., Ltd. (010660.KS)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$3,582.06 - $9,814.75$5,533.13
Multi-Stage$13,279.11 - $14,674.03$13,962.57
Blended Fair Value$9,747.85
Current Price$5,630.00
Upside73.14%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS27.23%-10.40%30.6527.589.190.000.009.199.190.0032.1982.75
YoY Growth--11.11%199.98%0.00%0.00%-100.00%0.00%0.00%-100.00%-61.11%-10.00%
Dividend Yield--1.00%0.44%0.32%0.00%0.00%0.45%0.42%0.00%1.48%3.32%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,455.87
(-) Cash Dividends Paid (M)879.89
(=) Cash Retained (M)2,575.98
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)691.17431.98259.19
Cash Retained (M)2,575.982,575.982,575.98
(-) Cash Required (M)-691.17-431.98-259.19
(=) Excess Retained (M)1,884.802,143.992,316.79
(/) Shares Outstanding (M)21.5321.5321.53
(=) Excess Retained per Share87.5399.56107.59
LTM Dividend per Share40.8640.8640.86
(+) Excess Retained per Share87.5399.56107.59
(=) Adjusted Dividend128.39140.42148.45
WACC / Discount Rate1.51%1.51%1.51%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3,582.06$5,533.13$9,814.75
Upside / Downside-36.38%-1.72%74.33%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,455.873,421.313,387.103,353.233,319.693,286.503,385.09
Payout Ratio25.46%38.37%51.28%64.18%77.09%90.00%92.50%
Projected Dividends (M)879.891,312.711,736.792,152.252,559.222,957.853,131.21

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate1.51%1.51%1.51%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)1,280.091,293.151,306.21
Year 2 PV (M)1,651.541,685.421,719.64
Year 3 PV (M)1,995.752,057.472,120.45
Year 4 PV (M)2,314.162,410.072,508.94
Year 5 PV (M)2,608.152,743.962,885.37
PV of Terminal Value (M)276,101.63290,478.89305,448.92
Equity Value (M)285,951.32300,668.96315,989.53
Shares Outstanding (M)21.5321.5321.53
Fair Value$13,279.11$13,962.57$14,674.03
Upside / Downside135.86%148.00%160.64%

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