Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Regions Financial Corporation (RF-PF)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$222.07 - $469.32$439.80
Multi-Stage$84.03 - $92.06$87.97
Blended Fair Value$263.89
Current Price$25.76
Upside924.40%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.05%13.68%0.980.870.730.670.650.630.500.380.350.33
YoY Growth--13.09%18.70%9.05%2.18%3.12%27.65%30.64%9.15%4.28%23.08%
Dividend Yield--3.90%3.46%2.91%2.67%2.61%2.53%1.99%1.52%1.39%1.34%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,156.00
(-) Cash Dividends Paid (M)905.00
(=) Cash Retained (M)1,251.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)431.20269.50161.70
Cash Retained (M)1,251.001,251.001,251.00
(-) Cash Required (M)-431.20-269.50-161.70
(=) Excess Retained (M)819.80981.501,089.30
(/) Shares Outstanding (M)909.00909.00909.00
(=) Excess Retained per Share0.901.081.20
LTM Dividend per Share1.001.001.00
(+) Excess Retained per Share0.901.081.20
(=) Adjusted Dividend1.902.082.19
WACC / Discount Rate5.85%5.85%5.85%
Growth Rate4.96%5.96%6.96%
Fair Value$222.07$439.80$469.32
Upside / Downside762.09%1,607.30%1,721.90%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,156.002,284.452,420.562,564.772,717.572,879.482,965.87
Payout Ratio41.98%51.58%61.19%70.79%80.40%90.00%92.50%
Projected Dividends (M)905.001,178.341,481.031,815.612,184.802,591.532,743.43

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.85%5.85%5.85%
Growth Rate4.96%5.96%6.96%
Year 1 PV (M)1,102.661,113.161,123.67
Year 2 PV (M)1,296.901,321.731,346.80
Year 3 PV (M)1,487.781,530.711,574.46
Year 4 PV (M)1,675.321,740.091,806.72
Year 5 PV (M)1,859.591,949.882,043.64
PV of Terminal Value (M)68,960.8172,309.1875,786.37
Equity Value (M)76,383.0679,964.7683,681.65
Shares Outstanding (M)909.00909.00909.00
Fair Value$84.03$87.97$92.06
Upside / Downside226.20%241.50%257.37%

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