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$113.18 - $472.03$287.25
Multi-Stage$58.42 - $63.78$61.05
Blended Fair Value$174.15
Current Price$31.87
Upside446.44%
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 Rate7.27%7.27%7.27%
Growth Rate5.50%6.50%7.50%
Fair Value$113.18$287.25$472.03
Upside / Downside255.12%801.32%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 Rate7.27%7.27%7.27%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)197.03198.89200.76
Year 2 PV (M)198.74202.52206.35
Year 3 PV (M)200.34206.09211.95
Year 4 PV (M)201.84209.60217.58
Year 5 PV (M)203.23213.05223.24
PV of Terminal Value (M)5,038.455,281.815,534.48
Equity Value (M)6,039.636,311.976,594.37
Shares Outstanding (M)103.39103.39103.39
Fair Value$58.42$61.05$63.78
Upside / Downside83.29%91.56%100.13%

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