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Universal Insurance Holdings, Inc. (UVE)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$89.19 - $210.37$131.34
Multi-Stage$66.07 - $72.25$69.11
Blended Fair Value$100.22
Current Price$26.30
Upside281.08%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.09%1.49%0.770.810.820.840.850.900.880.830.840.77
YoY Growth---4.14%-2.08%-1.72%-1.45%-5.97%2.34%6.28%-0.79%8.55%15.84%
Dividend Yield--3.26%4.05%4.52%6.21%5.93%5.05%2.76%2.61%3.42%4.34%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)122.38
(-) Cash Dividends Paid (M)17.50
(=) Cash Retained (M)104.88
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)24.4815.309.18
Cash Retained (M)104.88104.88104.88
(-) Cash Required (M)-24.48-15.30-9.18
(=) Excess Retained (M)80.4089.5895.70
(/) Shares Outstanding (M)28.8728.8728.87
(=) Excess Retained per Share2.783.103.31
LTM Dividend per Share0.610.610.61
(+) Excess Retained per Share2.783.103.31
(=) Adjusted Dividend3.393.713.92
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.10%6.10%7.10%
Fair Value$89.19$131.34$210.37
Upside / Downside239.11%399.40%699.88%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)122.38129.85137.77146.18155.10164.56169.50
Payout Ratio14.30%29.44%44.58%59.72%74.86%90.00%92.50%
Projected Dividends (M)17.5038.2361.4287.30116.11148.10156.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.10%6.10%7.10%
Year 1 PV (M)34.7135.0435.37
Year 2 PV (M)50.6351.6052.58
Year 3 PV (M)65.3567.2369.15
Year 4 PV (M)78.9181.9685.09
Year 5 PV (M)91.3995.83100.43
PV of Terminal Value (M)1,586.601,663.531,743.42
Equity Value (M)1,907.601,995.192,086.03
Shares Outstanding (M)28.8728.8728.87
Fair Value$66.07$69.11$72.25
Upside / Downside151.23%162.76%174.73%

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