Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Irani Papel e Embalagem S.A. (RANI3.SA)

Company Dividend Discount ModelIndustry: Packaging & ContainersSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$173.58 - $334.14$313.14
Multi-Stage$52.28 - $57.22$54.70
Blended Fair Value$183.92
Current Price$8.34
Upside2,105.31%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS102.25%18.82%0.540.890.680.390.070.020.000.020.000.08
YoY Growth---38.73%29.57%76.56%443.60%344.13%5,377.94%-98.36%1,227.88%-98.21%-22.43%
Dividend Yield--7.53%10.40%9.37%7.36%1.75%0.74%0.01%1.24%0.07%3.06%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)390.24
(-) Cash Dividends Paid (M)169.06
(=) Cash Retained (M)221.18
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)78.0548.7829.27
Cash Retained (M)221.18221.18221.18
(-) Cash Required (M)-78.05-48.78-29.27
(=) Excess Retained (M)143.13172.40191.91
(/) Shares Outstanding (M)232.26232.26232.26
(=) Excess Retained per Share0.620.740.83
LTM Dividend per Share0.730.730.73
(+) Excess Retained per Share0.620.740.83
(=) Adjusted Dividend1.341.471.55
WACC / Discount Rate6.32%6.32%6.32%
Growth Rate5.50%6.50%7.50%
Fair Value$173.58$313.14$334.14
Upside / Downside1,981.33%3,654.71%3,906.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)390.24415.60442.62471.39502.03534.66550.70
Payout Ratio43.32%52.66%61.99%71.33%80.66%90.00%92.50%
Projected Dividends (M)169.06218.84274.39336.23404.96481.19509.39

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.32%6.32%6.32%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)203.91205.84207.77
Year 2 PV (M)238.22242.75247.33
Year 3 PV (M)271.98279.79287.75
Year 4 PV (M)305.22316.95329.03
Year 5 PV (M)337.92354.25371.19
PV of Terminal Value (M)10,784.9611,305.8811,846.73
Equity Value (M)12,142.2112,705.4613,289.80
Shares Outstanding (M)232.26232.26232.26
Fair Value$52.28$54.70$57.22
Upside / Downside526.84%555.92%586.09%

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