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Middlefield Banc Corp. (MBCN)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$45.81 - $121.52$70.05
Multi-Stage$32.02 - $34.94$33.45
Blended Fair Value$51.75
Current Price$30.01
Upside72.45%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.87%11.78%0.800.850.680.520.470.450.470.410.290.27
YoY Growth---5.93%25.03%29.48%10.59%4.04%-2.49%12.54%44.87%7.66%1.51%
Dividend Yield--2.85%3.59%2.42%2.11%2.26%2.87%2.30%1.69%1.27%1.69%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)15.84
(-) Cash Dividends Paid (M)6.71
(=) Cash Retained (M)9.13
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.171.981.19
Cash Retained (M)9.139.139.13
(-) Cash Required (M)-3.17-1.98-1.19
(=) Excess Retained (M)5.967.157.94
(/) Shares Outstanding (M)8.118.118.11
(=) Excess Retained per Share0.740.880.98
LTM Dividend per Share0.830.830.83
(+) Excess Retained per Share0.740.880.98
(=) Adjusted Dividend1.561.711.81
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$45.81$70.05$121.52
Upside / Downside52.65%133.42%304.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)15.8416.8617.9619.1320.3721.7022.35
Payout Ratio42.36%51.89%61.42%70.94%80.47%90.00%92.50%
Projected Dividends (M)6.718.7511.0313.5716.3919.5320.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)7.958.028.10
Year 2 PV (M)9.099.279.44
Year 3 PV (M)10.1610.4510.75
Year 4 PV (M)11.1411.5712.01
Year 5 PV (M)12.0512.6313.24
PV of Terminal Value (M)209.21219.32229.81
Equity Value (M)259.61271.26283.35
Shares Outstanding (M)8.118.118.11
Fair Value$32.02$33.45$34.94
Upside / Downside6.69%11.48%16.44%

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