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Northeast Bank (NBN)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$249.40 - $661.59$381.36
Multi-Stage$165.95 - $181.58$173.62
Blended Fair Value$277.49
Current Price$100.16
Upside177.05%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-1.32%-1.81%0.040.040.040.040.040.040.040.040.040.05
YoY Growth--9.48%3.73%-6.35%-4.83%-7.54%-0.28%1.13%-0.56%-6.05%-5.47%
Dividend Yield--0.04%0.05%0.08%0.10%0.12%0.23%0.19%0.20%0.16%0.39%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)88.88
(-) Cash Dividends Paid (M)0.34
(=) Cash Retained (M)88.54
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)17.7811.116.67
Cash Retained (M)88.5488.5488.54
(-) Cash Required (M)-17.78-11.11-6.67
(=) Excess Retained (M)70.7777.4381.88
(/) Shares Outstanding (M)8.368.368.36
(=) Excess Retained per Share8.479.269.79
LTM Dividend per Share0.040.040.04
(+) Excess Retained per Share8.479.269.79
(=) Adjusted Dividend8.519.309.83
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$249.40$381.36$661.59
Upside / Downside149.00%280.75%560.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)88.8894.66100.81107.36114.34121.77125.42
Payout Ratio0.38%18.30%36.23%54.15%72.08%90.00%92.50%
Projected Dividends (M)0.3417.3236.5258.1482.41109.59116.02

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)15.7315.8816.03
Year 2 PV (M)30.1130.6831.26
Year 3 PV (M)43.5244.7746.04
Year 4 PV (M)56.0258.1760.39
Year 5 PV (M)67.6470.9174.30
PV of Terminal Value (M)1,174.261,230.981,289.86
Equity Value (M)1,387.281,451.391,517.89
Shares Outstanding (M)8.368.368.36
Fair Value$165.95$173.62$181.58
Upside / Downside65.69%73.34%81.29%

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