Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Italgas S.p.A. (IG.MI)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$33.53 - $153.58$58.90
Multi-Stage$24.07 - $26.34$25.18
Blended Fair Value$42.04
Current Price$7.20
Upside483.90%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.61%6.68%0.370.330.310.300.270.260.210.200.000.26
YoY Growth--10.85%6.80%4.16%10.02%6.36%23.47%4.00%0.00%-100.00%36.31%
Dividend Yield--6.83%6.44%6.02%4.95%5.24%4.71%4.10%3.99%0.00%6.65%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)874.51
(-) Cash Dividends Paid (M)317.85
(=) Cash Retained (M)556.65
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)174.90109.3165.59
Cash Retained (M)556.65556.65556.65
(-) Cash Required (M)-174.90-109.31-65.59
(=) Excess Retained (M)381.75447.34491.06
(/) Shares Outstanding (M)811.12811.12811.12
(=) Excess Retained per Share0.470.550.61
LTM Dividend per Share0.390.390.39
(+) Excess Retained per Share0.470.550.61
(=) Adjusted Dividend0.860.941.00
WACC / Discount Rate7.38%7.38%7.38%
Growth Rate4.68%5.68%6.68%
Fair Value$33.53$58.90$153.58
Upside / Downside365.71%718.02%2,033.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)874.51924.21976.741,032.261,090.931,152.941,187.52
Payout Ratio36.35%47.08%57.81%68.54%79.27%90.00%92.50%
Projected Dividends (M)317.85435.09564.64707.50864.771,037.641,098.46

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.38%7.38%7.38%
Growth Rate4.68%5.68%6.68%
Year 1 PV (M)401.37405.20409.04
Year 2 PV (M)480.50489.72499.03
Year 3 PV (M)555.40571.47587.85
Year 4 PV (M)626.25650.52675.50
Year 5 PV (M)693.19726.94761.99
PV of Terminal Value (M)16,767.0017,583.2818,431.06
Equity Value (M)19,523.7120,427.1521,364.47
Shares Outstanding (M)811.12811.12811.12
Fair Value$24.07$25.18$26.34
Upside / Downside234.31%249.78%265.83%

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