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Veritex Holdings, Inc. (VBTX)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$49.36 - $130.94$75.48
Multi-Stage$34.35 - $37.50$35.89
Blended Fair Value$55.69
Current Price$26.10
Upside113.36%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.22%0.00%0.790.790.770.660.620.490.000.000.000.00
YoY Growth--0.60%2.43%15.72%7.30%27.10%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.17%3.94%4.21%1.74%1.89%3.48%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)115.86
(-) Cash Dividends Paid (M)44.65
(=) Cash Retained (M)71.21
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)23.1714.488.69
Cash Retained (M)71.2171.2171.21
(-) Cash Required (M)-23.17-14.48-8.69
(=) Excess Retained (M)48.0456.7362.52
(/) Shares Outstanding (M)55.0655.0655.06
(=) Excess Retained per Share0.871.031.14
LTM Dividend per Share0.810.810.81
(+) Excess Retained per Share0.871.031.14
(=) Adjusted Dividend1.681.841.95
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$49.36$75.48$130.94
Upside / Downside89.12%189.19%401.69%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)115.86123.39131.41139.95149.05158.74163.50
Payout Ratio38.53%48.83%59.12%69.41%79.71%90.00%92.50%
Projected Dividends (M)44.6560.2577.6997.15118.80142.86151.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)54.7055.2255.74
Year 2 PV (M)64.0565.2766.50
Year 3 PV (M)72.7274.8176.94
Year 4 PV (M)80.7583.8687.05
Year 5 PV (M)88.1892.4396.86
PV of Terminal Value (M)1,530.731,604.671,681.43
Equity Value (M)1,891.151,976.272,064.53
Shares Outstanding (M)55.0655.0655.06
Fair Value$34.35$35.89$37.50
Upside / Downside31.60%37.52%43.67%

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