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OPAL Fuels Inc. (OPAL)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$2.75 - $3.95$3.33
Multi-Stage$4.57 - $5.01$4.78
Blended Fair Value$4.06
Current Price$2.20
Upside84.52%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.000.000.000.130.030.010.000.000.000.00
YoY Growth--0.00%0.00%-100.00%333.69%110.89%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%1.30%0.30%0.14%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)11.15
(-) Cash Dividends Paid (M)5.23
(=) Cash Retained (M)5.92
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.231.390.84
Cash Retained (M)5.925.925.92
(-) Cash Required (M)-2.23-1.39-0.84
(=) Excess Retained (M)3.694.525.08
(/) Shares Outstanding (M)28.7428.7428.74
(=) Excess Retained per Share0.130.160.18
LTM Dividend per Share0.180.180.18
(+) Excess Retained per Share0.130.160.18
(=) Adjusted Dividend0.310.340.36
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.75$3.33$3.95
Upside / Downside24.78%51.55%79.65%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)11.1511.0410.9310.8210.7110.6010.92
Payout Ratio46.94%55.55%64.16%72.77%81.39%90.00%92.50%
Projected Dividends (M)5.236.137.017.878.729.5410.10

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)5.575.625.68
Year 2 PV (M)5.785.896.01
Year 3 PV (M)5.886.076.25
Year 4 PV (M)5.916.166.41
Year 5 PV (M)5.876.186.50
PV of Terminal Value (M)102.28107.61113.15
Equity Value (M)131.29137.53144.01
Shares Outstanding (M)28.7428.7428.74
Fair Value$4.57$4.78$5.01
Upside / Downside107.63%117.49%127.74%

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