Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

First Interstate BancSystem, Inc. (FIBK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$126.92 - $472.03$382.40
Multi-Stage$61.21 - $66.85$63.98
Blended Fair Value$223.19
Current Price$31.87
Upside600.32%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS19.86%21.21%1.891.891.760.981.240.770.620.470.380.35
YoY Growth--0.41%7.14%79.23%-21.00%62.37%23.56%31.89%23.35%8.57%26.77%
Dividend Yield--6.61%7.18%5.90%2.67%2.70%2.66%1.53%1.19%0.96%1.25%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)245.40
(-) Cash Dividends Paid (M)195.20
(=) Cash Retained (M)50.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)49.0830.6818.41
Cash Retained (M)50.2050.2050.20
(-) Cash Required (M)-49.08-30.68-18.41
(=) Excess Retained (M)1.1219.5331.80
(/) Shares Outstanding (M)103.39103.39103.39
(=) Excess Retained per Share0.010.190.31
LTM Dividend per Share1.891.891.89
(+) Excess Retained per Share0.010.190.31
(=) Adjusted Dividend1.902.082.20
WACC / Discount Rate7.08%7.08%7.08%
Growth Rate5.50%6.50%7.50%
Fair Value$126.92$382.40$472.03
Upside / Downside298.23%1,099.88%1,381.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)245.40261.35278.34296.43315.70336.22346.31
Payout Ratio79.54%81.63%83.73%85.82%87.91%90.00%92.50%
Projected Dividends (M)195.20213.35233.04254.39277.53302.60320.33

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.08%7.08%7.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)197.38199.25201.12
Year 2 PV (M)199.45203.25207.09
Year 3 PV (M)201.42207.20213.09
Year 4 PV (M)203.29211.10219.15
Year 5 PV (M)205.05214.96225.24
PV of Terminal Value (M)5,322.515,579.595,846.51
Equity Value (M)6,329.106,615.366,912.20
Shares Outstanding (M)103.39103.39103.39
Fair Value$61.21$63.98$66.85
Upside / Downside92.08%100.76%109.77%

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