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Grupo Security S.A. (SECURITY.SN)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$1,301.70 - $4,696.44$4,143.10
Multi-Stage$624.73 - $681.88$652.79
Blended Fair Value$2,397.94
Current Price$283.89
Upside744.67%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS10.22%0.00%18.5419.1015.0410.9410.2411.400.000.000.000.00
YoY Growth---2.92%27.00%37.46%6.88%-10.21%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--6.55%6.95%9.45%0.00%0.00%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)94,349.97
(-) Cash Dividends Paid (M)92,319.29
(=) Cash Retained (M)2,030.68
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18,869.9911,793.757,076.25
Cash Retained (M)2,030.682,030.682,030.68
(-) Cash Required (M)-18,869.99-11,793.75-7,076.25
(=) Excess Retained (M)-16,839.31-9,763.06-5,045.56
(/) Shares Outstanding (M)3,995.343,995.343,995.34
(=) Excess Retained per Share-4.21-2.44-1.26
LTM Dividend per Share23.1123.1123.11
(+) Excess Retained per Share-4.21-2.44-1.26
(=) Adjusted Dividend18.8920.6621.84
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Fair Value$1,301.70$4,143.10$4,696.44
Upside / Downside358.52%1,359.40%1,554.32%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)94,349.97100,482.72107,014.10113,970.02121,378.07129,267.64133,145.67
Payout Ratio97.85%96.28%94.71%93.14%91.57%90.00%92.50%
Projected Dividends (M)92,319.2996,742.93101,351.58106,150.63111,145.34116,340.88123,159.75

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)89,538.9290,387.6391,236.34
Year 2 PV (M)86,819.2188,472.8790,142.13
Year 3 PV (M)84,158.9986,574.8989,036.59
Year 4 PV (M)81,557.1184,693.5787,919.63
Year 5 PV (M)79,012.4582,828.7886,791.17
PV of Terminal Value (M)2,074,925.742,175,145.432,279,200.77
Equity Value (M)2,496,012.422,608,103.172,724,326.63
Shares Outstanding (M)3,995.343,995.343,995.34
Fair Value$624.73$652.79$681.88
Upside / Downside120.06%129.94%140.19%

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