Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Trustmark Corporation (TRMK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$24.24 - $34.51$29.29
Multi-Stage$42.39 - $46.62$44.46
Blended Fair Value$36.88
Current Price$39.60
Upside-6.88%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.03%-0.95%0.930.930.930.950.960.981.021.031.031.03
YoY Growth--0.24%-0.05%-2.42%-1.16%-1.73%-4.20%-0.59%0.21%0.10%0.21%
Dividend Yield--2.70%3.38%3.76%3.14%2.86%4.21%2.97%3.31%3.23%4.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)222.57
(-) Cash Dividends Paid (M)58.12
(=) Cash Retained (M)164.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)44.5127.8216.69
Cash Retained (M)164.45164.45164.45
(-) Cash Required (M)-44.51-27.82-16.69
(=) Excess Retained (M)119.94136.63147.76
(/) Shares Outstanding (M)60.9660.9660.96
(=) Excess Retained per Share1.972.242.42
LTM Dividend per Share0.950.950.95
(+) Excess Retained per Share1.972.242.42
(=) Adjusted Dividend2.923.193.38
WACC / Discount Rate8.74%8.74%8.74%
Growth Rate-2.95%-1.95%-0.95%
Fair Value$24.24$29.29$34.51
Upside / Downside-38.78%-26.02%-12.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)222.57218.23213.98209.81205.72201.71207.76
Payout Ratio26.11%38.89%51.67%64.45%77.22%90.00%92.50%
Projected Dividends (M)58.1284.87110.56135.21158.86181.54192.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.74%8.74%8.74%
Growth Rate-2.95%-1.95%-0.95%
Year 1 PV (M)77.2578.0578.84
Year 2 PV (M)91.6093.5095.41
Year 3 PV (M)101.97105.15108.40
Year 4 PV (M)109.05113.61118.32
Year 5 PV (M)113.42119.39125.60
PV of Terminal Value (M)2,090.842,200.802,315.34
Equity Value (M)2,584.132,710.502,841.92
Shares Outstanding (M)60.9660.9660.96
Fair Value$42.39$44.46$46.62
Upside / Downside7.04%12.27%17.72%

High-Yield Dividend Screener

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