Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

engcon AB (publ) (ENGCON-B.ST)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$55.70 - $290.42$112.24
Multi-Stage$38.07 - $41.64$39.82
Blended Fair Value$76.03
Current Price$74.20
Upside2.47%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS7.48%0.00%0.930.932.941.070.330.650.000.000.000.00
YoY Growth--0.00%-68.30%174.85%226.00%-49.49%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.02%1.12%3.74%1.49%0.46%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)224.00
(-) Cash Dividends Paid (M)148.00
(=) Cash Retained (M)76.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)44.8028.0016.80
Cash Retained (M)76.0076.0076.00
(-) Cash Required (M)-44.80-28.00-16.80
(=) Excess Retained (M)31.2048.0059.20
(/) Shares Outstanding (M)152.21152.21152.21
(=) Excess Retained per Share0.200.320.39
LTM Dividend per Share0.970.970.97
(+) Excess Retained per Share0.200.320.39
(=) Adjusted Dividend1.181.291.36
WACC / Discount Rate6.88%6.88%6.88%
Growth Rate4.67%5.67%6.67%
Fair Value$55.70$112.24$290.42
Upside / Downside-24.93%51.27%291.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)224.00236.70250.12264.31279.29295.13303.98
Payout Ratio66.07%70.86%75.64%80.43%85.21%90.00%92.50%
Projected Dividends (M)148.00167.72189.20212.58238.00265.62281.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.88%6.88%6.88%
Growth Rate4.67%5.67%6.67%
Year 1 PV (M)155.43156.92158.40
Year 2 PV (M)162.50165.62168.77
Year 3 PV (M)169.20174.10179.09
Year 4 PV (M)175.56182.37189.37
Year 5 PV (M)181.58190.42199.61
PV of Terminal Value (M)4,951.055,192.125,442.49
Equity Value (M)5,795.336,061.556,337.72
Shares Outstanding (M)152.21152.21152.21
Fair Value$38.07$39.82$41.64
Upside / Downside-48.69%-46.33%-43.88%

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