Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Servyou Software Group Co., Ltd. (603171.SS)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$1.80 - $2.58$2.19
Multi-Stage$3.07 - $3.36$3.21
Blended Fair Value$2.70
Current Price$50.83
Upside-94.69%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS335.26%0.00%0.160.270.310.180.180.000.010.280.130.00
YoY Growth---38.80%-13.48%72.75%0.00%170,678.34%-98.55%-97.41%121.97%0.00%0.00%
Dividend Yield--0.36%1.03%0.70%0.56%0.93%0.00%0.04%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)107.08
(-) Cash Dividends Paid (M)84.94
(=) Cash Retained (M)22.14
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)21.4213.398.03
Cash Retained (M)22.1422.1422.14
(-) Cash Required (M)-21.42-13.39-8.03
(=) Excess Retained (M)0.728.7614.11
(/) Shares Outstanding (M)409.04409.04409.04
(=) Excess Retained per Share0.000.020.03
LTM Dividend per Share0.210.210.21
(+) Excess Retained per Share0.000.020.03
(=) Adjusted Dividend0.210.230.24
WACC / Discount Rate9.37%9.37%9.37%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.80$2.19$2.58
Upside / Downside-96.45%-95.70%-94.92%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)107.08106.01104.95103.90102.86101.83104.89
Payout Ratio79.32%81.46%83.59%85.73%87.86%90.00%92.50%
Projected Dividends (M)84.9486.3587.7389.0790.3891.6597.02

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.37%9.37%9.37%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)78.1678.9579.75
Year 2 PV (M)71.8673.3474.83
Year 3 PV (M)66.0368.0870.16
Year 4 PV (M)60.6463.1565.75
Year 5 PV (M)55.6658.5561.57
PV of Terminal Value (M)924.31972.441,022.56
Equity Value (M)1,256.661,314.521,374.61
Shares Outstanding (M)409.04409.04409.04
Fair Value$3.07$3.21$3.36
Upside / Downside-93.96%-93.68%-93.39%

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