Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Grupo Security S.A. (SECURITY.SN)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$804.08 - $4,696.44$1,488.18
Multi-Stage$505.07 - $550.51$527.38
Blended Fair Value$1,007.78
Current Price$283.89
Upside254.99%
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 Rate7.98%7.98%7.98%
Growth Rate5.50%6.50%7.50%
Fair Value$804.08$1,488.18$4,696.44
Upside / Downside183.24%424.21%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 Rate7.98%7.98%7.98%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)88,753.1689,594.4290,435.68
Year 2 PV (M)85,302.1086,926.8788,566.96
Year 3 PV (M)81,962.7284,315.5886,713.03
Year 4 PV (M)78,731.7081,759.5084,873.80
Year 5 PV (M)75,605.8479,257.6383,049.18
PV of Terminal Value (M)1,607,579.121,685,225.791,765,844.18
Equity Value (M)2,017,934.642,107,079.782,199,482.84
Shares Outstanding (M)3,995.343,995.343,995.34
Fair Value$505.07$527.38$550.51
Upside / Downside77.91%85.77%93.92%

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