Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Bassett Furniture Industries, Incorporated (BSET)

Company Dividend Discount ModelIndustry: Furnishings, Fixtures & AppliancesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$7.25 - $10.79$8.93
Multi-Stage$14.48 - $15.87$15.16
Blended Fair Value$12.05
Current Price$16.82
Upside-28.37%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.33%2.59%0.760.692.310.880.520.591.010.890.720.66
YoY Growth--11.23%-70.33%162.22%69.21%-11.47%-41.67%13.92%22.41%9.07%12.24%
Dividend Yield--4.83%4.12%12.28%5.11%2.47%5.96%4.98%2.60%2.69%2.19%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7.78
(-) Cash Dividends Paid (M)6.96
(=) Cash Retained (M)0.82
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.560.970.58
Cash Retained (M)0.820.820.82
(-) Cash Required (M)-1.56-0.97-0.58
(=) Excess Retained (M)-0.73-0.150.24
(/) Shares Outstanding (M)8.728.728.72
(=) Excess Retained per Share-0.08-0.020.03
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share-0.08-0.020.03
(=) Adjusted Dividend0.710.780.82
WACC / Discount Rate7.65%7.65%7.65%
Growth Rate-2.00%-1.00%0.00%
Fair Value$7.25$8.93$10.79
Upside / Downside-56.91%-46.89%-35.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7.787.707.627.557.477.407.62
Payout Ratio89.43%89.54%89.66%89.77%89.89%90.00%92.50%
Projected Dividends (M)6.966.896.836.776.716.667.05

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.65%7.65%7.65%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)6.346.406.47
Year 2 PV (M)5.785.906.02
Year 3 PV (M)5.275.435.60
Year 4 PV (M)4.805.005.21
Year 5 PV (M)4.384.604.84
PV of Terminal Value (M)99.69104.88110.29
Equity Value (M)126.26132.22138.42
Shares Outstanding (M)8.728.728.72
Fair Value$14.48$15.16$15.87
Upside / Downside-13.92%-9.86%-5.63%

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