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American Integrity Insurance Group, Inc. (AII)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$32.53 - $46.82$39.50
Multi-Stage$52.51 - $57.68$55.05
Blended Fair Value$47.28
Current Price$22.31
Upside111.90%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023
DPS0.00%0.00%0.640.100.000.000.000.000.000.000.000.00
YoY Growth--554.55%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.76%0.57%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)87.15
(-) Cash Dividends Paid (M)22.88
(=) Cash Retained (M)64.28
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)17.4310.896.54
Cash Retained (M)64.2864.2864.28
(-) Cash Required (M)-17.43-10.89-6.54
(=) Excess Retained (M)46.8553.3857.74
(/) Shares Outstanding (M)18.9218.9218.92
(=) Excess Retained per Share2.482.823.05
LTM Dividend per Share1.211.211.21
(+) Excess Retained per Share2.482.823.05
(=) Adjusted Dividend3.684.034.26
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$32.53$39.50$46.82
Upside / Downside45.82%77.07%109.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)87.1586.2885.4284.5683.7282.8885.37
Payout Ratio26.25%39.00%51.75%64.50%77.25%90.00%92.50%
Projected Dividends (M)22.8833.6544.2054.5464.6774.5978.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)30.5330.8431.15
Year 2 PV (M)36.3937.1437.89
Year 3 PV (M)40.7442.0043.29
Year 4 PV (M)43.8345.6547.52
Year 5 PV (M)45.8748.2650.75
PV of Terminal Value (M)796.36837.83881.01
Equity Value (M)993.731,041.721,091.61
Shares Outstanding (M)18.9218.9218.92
Fair Value$52.51$55.05$57.68
Upside / Downside135.36%146.73%158.55%

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