Definitive Analysis
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Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Western Asset Managed Municipals Fund Class C (SMMCX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$9.36 - $13.28$11.29
Multi-Stage$15.27 - $16.70$15.97
Blended Fair Value$13.63
Current Price$14.42
Upside-5.48%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020
DPS6.43%0.00%0.690.480.380.410.450.500.000.000.000.00
YoY Growth--44.65%25.02%-7.23%-8.22%-11.30%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.78%3.22%2.57%2.68%2.66%3.19%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)73.38
(-) Cash Dividends Paid (M)52.58
(=) Cash Retained (M)20.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.689.175.50
Cash Retained (M)20.8020.8020.80
(-) Cash Required (M)-14.68-9.17-5.50
(=) Excess Retained (M)6.1311.6315.30
(/) Shares Outstanding (M)51.8551.8551.85
(=) Excess Retained per Share0.120.220.30
LTM Dividend per Share1.011.011.01
(+) Excess Retained per Share0.120.220.30
(=) Adjusted Dividend1.131.241.31
WACC / Discount Rate9.86%9.86%9.86%
Growth Rate-2.00%-1.00%0.00%
Fair Value$9.36$11.29$13.28
Upside / Downside-35.12%-21.71%-7.92%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)73.3872.6571.9271.2070.4969.7871.88
Payout Ratio71.65%75.32%78.99%82.66%86.33%90.00%92.50%
Projected Dividends (M)52.5854.7256.8158.8560.8562.8066.49

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.86%9.86%9.86%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)49.3049.8150.31
Year 2 PV (M)46.1247.0748.03
Year 3 PV (M)43.0644.3945.75
Year 4 PV (M)40.1141.7843.49
Year 5 PV (M)37.3139.2541.27
PV of Terminal Value (M)575.79605.78637.00
Equity Value (M)791.70828.07865.84
Shares Outstanding (M)51.8551.8551.85
Fair Value$15.27$15.97$16.70
Upside / Downside5.88%10.75%15.80%

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