Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Flaherty & Crumrine Total Return Fund Inc. (FLC)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$22.93 - $32.60$27.70
Multi-Stage$69.12 - $76.37$72.67
Blended Fair Value$50.18
Current Price$16.63
Upside201.75%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.66%-4.18%0.850.881.101.121.061.021.101.161.191.23
YoY Growth---3.11%-20.61%-1.53%5.24%4.10%-6.91%-5.14%-2.37%-3.67%-5.36%
Dividend Yield--5.08%6.16%6.82%4.95%4.60%4.63%6.44%5.43%5.91%6.35%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)46.89
(-) Cash Dividends Paid (M)20.05
(=) Cash Retained (M)26.84
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.385.863.52
Cash Retained (M)26.8426.8426.84
(-) Cash Required (M)-9.38-5.86-3.52
(=) Excess Retained (M)17.4620.9823.32
(/) Shares Outstanding (M)13.0713.0713.07
(=) Excess Retained per Share1.341.601.78
LTM Dividend per Share1.531.531.53
(+) Excess Retained per Share1.341.601.78
(=) Adjusted Dividend2.873.143.32
WACC / Discount Rate6.14%6.14%6.14%
Growth Rate-5.66%-4.66%-3.66%
Fair Value$22.93$27.70$32.60
Upside / Downside37.91%66.54%96.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)46.8944.7142.6240.6338.7436.9338.04
Payout Ratio42.77%52.21%61.66%71.11%80.55%90.00%92.50%
Projected Dividends (M)20.0523.3426.2828.8931.2133.2435.19

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.14%6.14%6.14%
Growth Rate-5.66%-4.66%-3.66%
Year 1 PV (M)21.7621.9922.22
Year 2 PV (M)22.8423.3323.82
Year 3 PV (M)23.4124.1624.93
Year 4 PV (M)23.5724.5925.63
Year 5 PV (M)23.4024.6725.99
PV of Terminal Value (M)788.42831.11875.62
Equity Value (M)903.41949.84998.21
Shares Outstanding (M)13.0713.0713.07
Fair Value$69.12$72.67$76.37
Upside / Downside315.61%336.97%359.22%

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