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Northwest Bancshares, Inc. (NWBI)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$14.10 - $27.34$19.36
Multi-Stage$14.09 - $15.35$14.71
Blended Fair Value$17.04
Current Price$12.39
Upside37.50%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.98%-3.79%0.780.780.780.770.710.580.530.500.460.40
YoY Growth--0.18%0.20%1.19%7.67%22.26%8.94%7.22%8.40%13.88%-64.77%
Dividend Yield--6.47%6.81%6.44%5.67%4.92%5.03%3.11%3.01%2.73%2.99%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)113.05
(-) Cash Dividends Paid (M)106.05
(=) Cash Retained (M)7.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)22.6114.138.48
Cash Retained (M)7.007.007.00
(-) Cash Required (M)-22.61-14.13-8.48
(=) Excess Retained (M)-15.61-7.13-1.48
(/) Shares Outstanding (M)130.89130.89130.89
(=) Excess Retained per Share-0.12-0.05-0.01
LTM Dividend per Share0.810.810.81
(+) Excess Retained per Share-0.12-0.05-0.01
(=) Adjusted Dividend0.690.760.80
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.98%4.98%5.98%
Fair Value$14.10$19.36$27.34
Upside / Downside13.77%56.29%120.65%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)113.05118.68124.60130.81137.32144.17148.49
Payout Ratio93.81%93.05%92.29%91.52%90.76%90.00%92.50%
Projected Dividends (M)106.05110.43114.99119.72124.64129.75137.35

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.98%4.98%5.98%
Year 1 PV (M)100.28101.24102.20
Year 2 PV (M)94.8196.6498.49
Year 3 PV (M)89.6392.2494.90
Year 4 PV (M)84.7388.0491.44
Year 5 PV (M)80.0984.0288.10
PV of Terminal Value (M)1,394.531,462.891,533.90
Equity Value (M)1,844.071,925.062,009.03
Shares Outstanding (M)130.89130.89130.89
Fair Value$14.09$14.71$15.35
Upside / Downside13.71%18.71%23.88%

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