Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Customers Bancorp, Inc 5.375% S (CUBB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$47.15 - $71.42$58.57
Multi-Stage$78.37 - $86.21$82.22
Blended Fair Value$70.39
Current Price$21.45
Upside228.17%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.93%0.00%0.460.450.280.330.430.440.440.440.280.07
YoY Growth--3.49%56.94%-13.91%-23.04%-2.65%0.00%0.00%59.75%291.14%0.00%
Dividend Yield--2.35%2.26%1.75%1.31%1.67%2.22%1.76%1.76%1.10%0.28%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)176.51
(-) Cash Dividends Paid (M)22.14
(=) Cash Retained (M)154.37
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)35.3022.0613.24
Cash Retained (M)154.37154.37154.37
(-) Cash Required (M)-35.30-22.06-13.24
(=) Excess Retained (M)119.07132.31141.14
(/) Shares Outstanding (M)32.7732.7732.77
(=) Excess Retained per Share3.634.044.31
LTM Dividend per Share0.680.680.68
(+) Excess Retained per Share3.634.044.31
(=) Adjusted Dividend4.314.714.98
WACC / Discount Rate7.97%7.97%7.97%
Growth Rate-1.07%-0.07%0.93%
Fair Value$47.15$58.57$71.42
Upside / Downside119.82%173.06%232.96%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)176.51176.39176.28176.16176.05175.93181.21
Payout Ratio12.54%28.03%43.52%59.02%74.51%90.00%92.50%
Projected Dividends (M)22.1449.4576.72103.96131.17158.34167.62

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.97%7.97%7.97%
Growth Rate-1.07%-0.07%0.93%
Year 1 PV (M)45.3445.8046.26
Year 2 PV (M)64.5065.8167.13
Year 3 PV (M)80.1382.5985.09
Year 4 PV (M)92.7096.50100.42
Year 5 PV (M)102.60107.89113.39
PV of Terminal Value (M)2,183.242,295.832,413.02
Equity Value (M)2,568.512,694.422,825.32
Shares Outstanding (M)32.7732.7732.77
Fair Value$78.37$82.22$86.21
Upside / Downside265.38%283.29%301.91%

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