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Limestone Bancorp, Inc. (LMST)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$19.11 - $27.94$23.37
Multi-Stage$28.82 - $31.68$30.22
Blended Fair Value$26.80
Current Price$22.31
Upside20.11%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022202120202019201820172016201520142013
DPS0.00%0.00%0.200.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.90%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)18.95
(-) Cash Dividends Paid (M)1.53
(=) Cash Retained (M)17.42
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.792.371.42
Cash Retained (M)17.4217.4217.42
(-) Cash Required (M)-3.79-2.37-1.42
(=) Excess Retained (M)13.6315.0516.00
(/) Shares Outstanding (M)7.577.577.57
(=) Excess Retained per Share1.801.992.11
LTM Dividend per Share0.200.200.20
(+) Excess Retained per Share1.801.992.11
(=) Adjusted Dividend2.002.192.32
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.25%-0.25%0.75%
Fair Value$19.11$23.37$27.94
Upside / Downside-14.35%4.75%25.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)18.9518.9018.8518.8018.7618.7119.27
Payout Ratio8.06%24.45%40.84%57.22%73.61%90.00%92.50%
Projected Dividends (M)1.534.627.7010.7613.8116.8417.83

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.25%-0.25%0.75%
Year 1 PV (M)4.194.234.28
Year 2 PV (M)6.346.476.60
Year 3 PV (M)8.048.298.54
Year 4 PV (M)9.369.7510.14
Year 5 PV (M)10.3610.9011.45
PV of Terminal Value (M)179.85189.14198.81
Equity Value (M)218.14228.77239.82
Shares Outstanding (M)7.577.577.57
Fair Value$28.82$30.22$31.68
Upside / Downside29.17%35.47%42.01%

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