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Flaherty & Crumrine Preferred Securities Income Fund Inc. (FFC)

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

Valuation Snapshot

Stable Growth$23.99 - $33.16$28.60
Multi-Stage$44.22 - $48.63$46.38
Blended Fair Value$37.49
Current Price$15.67
Upside139.24%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.62%-3.48%1.041.061.311.351.241.191.251.271.381.42
YoY Growth---1.97%-18.87%-2.90%8.46%4.56%-4.96%-1.28%-8.03%-3.32%-4.00%
Dividend Yield--6.56%7.66%8.35%6.28%5.46%5.47%7.56%6.14%7.13%7.07%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)207.41
(-) Cash Dividends Paid (M)78.42
(=) Cash Retained (M)128.99
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)41.4825.9315.56
Cash Retained (M)128.99128.99128.99
(-) Cash Required (M)-41.48-25.93-15.56
(=) Excess Retained (M)87.51103.06113.43
(/) Shares Outstanding (M)48.1748.1748.17
(=) Excess Retained per Share1.822.142.35
LTM Dividend per Share1.631.631.63
(+) Excess Retained per Share1.822.142.35
(=) Adjusted Dividend3.443.773.98
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-4.62%-3.62%-2.62%
Fair Value$23.99$28.60$33.16
Upside / Downside53.08%82.51%111.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)207.41199.90192.67185.70178.99172.51177.69
Payout Ratio37.81%48.25%58.69%69.12%79.56%90.00%92.50%
Projected Dividends (M)78.4296.45113.07128.36142.40155.26164.36

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-4.62%-3.62%-2.62%
Year 1 PV (M)87.5088.4289.34
Year 2 PV (M)93.0795.0397.01
Year 3 PV (M)95.8698.90102.01
Year 4 PV (M)96.48100.59104.83
Year 5 PV (M)95.43100.54105.86
PV of Terminal Value (M)1,661.571,750.511,843.23
Equity Value (M)2,129.902,233.992,342.28
Shares Outstanding (M)48.1748.1748.17
Fair Value$44.22$46.38$48.63
Upside / Downside182.19%195.98%210.32%

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