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Brompton Lifeco Split Corp. (LCS.TO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$348.53 - $1,322.06$1,015.85
Multi-Stage$162.12 - $177.48$169.65
Blended Fair Value$592.75
Current Price$8.84
Upside6,605.36%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS26.37%8.55%0.830.930.360.500.190.260.690.610.160.62
YoY Growth---11.09%157.34%-28.24%163.42%-25.50%-62.71%11.91%286.54%-74.46%71.17%
Dividend Yield--9.67%16.57%9.29%8.34%5.81%4.70%28.67%10.00%2.69%12.24%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)49.50
(-) Cash Dividends Paid (M)8.68
(=) Cash Retained (M)40.82
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.906.193.71
Cash Retained (M)40.8240.8240.82
(-) Cash Required (M)-9.90-6.19-3.71
(=) Excess Retained (M)30.9234.6337.11
(/) Shares Outstanding (M)7.457.457.45
(=) Excess Retained per Share4.154.654.98
LTM Dividend per Share1.171.171.17
(+) Excess Retained per Share4.154.654.98
(=) Adjusted Dividend5.325.826.15
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate5.50%6.50%7.50%
Fair Value$348.53$1,015.85$1,322.06
Upside / Downside3,842.62%11,391.56%14,855.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)49.5052.7256.1559.8063.6867.8269.86
Payout Ratio17.54%32.03%46.53%61.02%75.51%90.00%92.50%
Projected Dividends (M)8.6816.8926.1236.4948.0961.0464.62

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)15.6215.7715.92
Year 2 PV (M)22.3422.7723.20
Year 3 PV (M)28.8629.6930.54
Year 4 PV (M)35.1836.5337.93
Year 5 PV (M)41.3043.3045.37
PV of Terminal Value (M)1,063.901,115.291,168.65
Equity Value (M)1,207.221,263.351,321.59
Shares Outstanding (M)7.457.457.45
Fair Value$162.12$169.65$177.48
Upside / Downside1,733.89%1,819.17%1,907.64%

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