Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Isabella Bank Corporation (ISBA)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$31.65 - $55.14$41.69
Multi-Stage$65.94 - $72.53$69.17
Blended Fair Value$55.43
Current Price$35.25
Upside57.25%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.33%1.76%1.101.111.091.131.151.121.101.081.030.98
YoY Growth---0.84%1.66%-3.41%-1.84%2.92%1.38%2.24%4.51%5.11%6.28%
Dividend Yield--4.65%5.67%4.39%4.36%5.28%6.20%4.64%3.93%3.73%3.47%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)18.22
(-) Cash Dividends Paid (M)8.11
(=) Cash Retained (M)10.11
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.642.281.37
Cash Retained (M)10.1110.1110.11
(-) Cash Required (M)-3.64-2.28-1.37
(=) Excess Retained (M)6.467.838.74
(/) Shares Outstanding (M)7.427.427.42
(=) Excess Retained per Share0.871.061.18
LTM Dividend per Share1.091.091.09
(+) Excess Retained per Share0.871.061.18
(=) Adjusted Dividend1.962.152.27
WACC / Discount Rate5.95%5.95%5.95%
Growth Rate-0.24%0.76%1.76%
Fair Value$31.65$41.69$55.14
Upside / Downside-10.23%18.28%56.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)18.2218.3518.4918.6318.7818.9219.49
Payout Ratio44.52%53.61%62.71%71.81%80.90%90.00%92.50%
Projected Dividends (M)8.119.8411.6013.3815.1917.0318.02

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.95%5.95%5.95%
Growth Rate-0.24%0.76%1.76%
Year 1 PV (M)9.209.299.38
Year 2 PV (M)10.1310.3310.54
Year 3 PV (M)10.9211.2511.59
Year 4 PV (M)11.5812.0512.54
Year 5 PV (M)12.1312.7513.40
PV of Terminal Value (M)435.33457.59480.75
Equity Value (M)489.28513.26538.19
Shares Outstanding (M)7.427.427.42
Fair Value$65.94$69.17$72.53
Upside / Downside87.05%96.22%105.75%

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