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Trustmark Corporation (TRMK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$23.53 - $33.29$28.35
Multi-Stage$39.78 - $43.73$41.72
Blended Fair Value$35.04
Current Price$39.60
Upside-11.52%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.03%-0.95%0.930.930.930.950.960.981.021.031.031.03
YoY Growth--0.24%-0.05%-2.42%-1.16%-1.73%-4.20%-0.59%0.21%0.10%0.21%
Dividend Yield--2.70%3.38%3.76%3.14%2.86%4.21%2.97%3.31%3.23%4.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)222.57
(-) Cash Dividends Paid (M)58.12
(=) Cash Retained (M)164.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)44.5127.8216.69
Cash Retained (M)164.45164.45164.45
(-) Cash Required (M)-44.51-27.82-16.69
(=) Excess Retained (M)119.94136.63147.76
(/) Shares Outstanding (M)60.9660.9660.96
(=) Excess Retained per Share1.972.242.42
LTM Dividend per Share0.950.950.95
(+) Excess Retained per Share1.972.242.42
(=) Adjusted Dividend2.923.193.38
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.95%-1.95%-0.95%
Fair Value$23.53$28.35$33.29
Upside / Downside-40.59%-28.40%-15.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)222.57218.23213.98209.81205.72201.71207.76
Payout Ratio26.11%38.89%51.67%64.45%77.22%90.00%92.50%
Projected Dividends (M)58.1284.87110.56135.21158.86181.54192.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.95%-1.95%-0.95%
Year 1 PV (M)77.0077.7978.59
Year 2 PV (M)91.0092.8994.79
Year 3 PV (M)100.97104.13107.35
Year 4 PV (M)107.63112.14116.78
Year 5 PV (M)111.59117.46123.57
PV of Terminal Value (M)1,937.192,039.072,145.19
Equity Value (M)2,425.392,543.472,666.27
Shares Outstanding (M)60.9660.9660.96
Fair Value$39.78$41.72$43.73
Upside / Downside0.46%5.35%10.44%

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