Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Saudi Networkers Services Company (9543.SR)

Company Dividend Discount ModelIndustry: Consulting ServicesSector: Industrials

Valuation Snapshot

Stable Growth$69.21 - $95.82$82.57
Multi-Stage$102.64 - $111.94$107.21
Blended Fair Value$94.89
Current Price$70.75
Upside34.12%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.13%0.00%4.354.351.673.335.294.320.000.000.000.00
YoY Growth--0.00%161.00%-49.97%-37.05%22.47%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--5.38%7.39%3.33%4.75%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)71.54
(-) Cash Dividends Paid (M)52.20
(=) Cash Retained (M)19.34
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.318.945.37
Cash Retained (M)19.3419.3419.34
(-) Cash Required (M)-14.31-8.94-5.37
(=) Excess Retained (M)5.0410.4013.98
(/) Shares Outstanding (M)6.006.006.00
(=) Excess Retained per Share0.841.732.33
LTM Dividend per Share8.708.708.70
(+) Excess Retained per Share0.841.732.33
(=) Adjusted Dividend9.5410.4311.03
WACC / Discount Rate11.66%11.66%11.66%
Growth Rate-1.87%-0.87%0.13%
Fair Value$69.21$82.57$95.82
Upside / Downside-2.18%16.70%35.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)71.5470.9370.3169.7069.1068.5070.56
Payout Ratio72.96%76.37%79.78%83.18%86.59%90.00%92.50%
Projected Dividends (M)52.2054.1756.0957.9859.8461.6565.27

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate11.66%11.66%11.66%
Growth Rate-1.87%-0.87%0.13%
Year 1 PV (M)48.0248.5149.00
Year 2 PV (M)44.0944.9945.90
Year 3 PV (M)40.4041.6542.92
Year 4 PV (M)36.9638.4940.07
Year 5 PV (M)33.7635.5237.34
PV of Terminal Value (M)412.62434.08456.42
Equity Value (M)615.85643.23671.65
Shares Outstanding (M)6.006.006.00
Fair Value$102.64$107.21$111.94
Upside / Downside45.08%51.53%58.22%

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