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NXG NextGen Infrastructure Income Fund (NXG)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$96.34 - $138.70$117.01
Multi-Stage$168.41 - $184.25$176.18
Blended Fair Value$146.59
Current Price$47.09
Upside211.30%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS5.64%0.00%5.803.172.062.063.684.413.643.020.000.00
YoY Growth--83.05%53.65%0.00%-43.89%-16.61%21.21%20.43%0.00%0.00%0.00%
Dividend Yield--10.86%9.91%4.85%4.58%10.29%8.69%5.62%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)43.94
(-) Cash Dividends Paid (M)36.72
(=) Cash Retained (M)7.22
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)8.795.493.30
Cash Retained (M)7.227.227.22
(-) Cash Required (M)-8.79-5.49-3.30
(=) Excess Retained (M)-1.571.723.92
(/) Shares Outstanding (M)3.233.233.23
(=) Excess Retained per Share-0.490.531.22
LTM Dividend per Share11.3811.3811.38
(+) Excess Retained per Share-0.490.531.22
(=) Adjusted Dividend10.8911.9112.59
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$96.34$117.01$138.70
Upside / Downside104.59%148.48%194.55%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)43.9443.5043.0642.6342.2041.7843.04
Payout Ratio83.58%84.86%86.15%87.43%88.72%90.00%92.50%
Projected Dividends (M)36.7236.9137.0937.2737.4437.6039.81

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)33.5033.8434.18
Year 2 PV (M)30.5531.1831.81
Year 3 PV (M)27.8628.7229.60
Year 4 PV (M)25.3926.4527.53
Year 5 PV (M)23.1524.3525.61
PV of Terminal Value (M)402.99423.97445.82
Equity Value (M)543.43568.50594.54
Shares Outstanding (M)3.233.233.23
Fair Value$168.41$176.18$184.25
Upside / Downside257.63%274.13%291.27%

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