Definitive Analysis
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OP Bancorp (OPBK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$37.19 - $98.67$56.87
Multi-Stage$25.63 - $28.00$26.79
Blended Fair Value$41.83
Current Price$13.92
Upside200.53%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS17.78%0.00%0.480.490.450.350.290.210.000.000.000.00
YoY Growth---1.73%8.88%30.09%20.41%35.26%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.00%4.91%5.04%2.49%2.73%2.84%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)23.57
(-) Cash Dividends Paid (M)7.12
(=) Cash Retained (M)16.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.712.951.77
Cash Retained (M)16.4516.4516.45
(-) Cash Required (M)-4.71-2.95-1.77
(=) Excess Retained (M)11.7413.5114.68
(/) Shares Outstanding (M)14.8614.8614.86
(=) Excess Retained per Share0.790.910.99
LTM Dividend per Share0.480.480.48
(+) Excess Retained per Share0.790.910.99
(=) Adjusted Dividend1.271.391.47
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$37.19$56.87$98.67
Upside / Downside167.20%308.57%608.80%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)23.5725.1026.7328.4730.3232.2933.26
Payout Ratio30.19%42.15%54.11%66.08%78.04%90.00%92.50%
Projected Dividends (M)7.1210.5814.4618.8123.6629.0630.76

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)9.619.709.79
Year 2 PV (M)11.9312.1512.38
Year 3 PV (M)14.0814.4914.90
Year 4 PV (M)16.0816.7017.34
Year 5 PV (M)17.9418.8019.70
PV of Terminal Value (M)311.37326.41342.02
Equity Value (M)381.00398.25416.13
Shares Outstanding (M)14.8614.8614.86
Fair Value$25.63$26.79$28.00
Upside / Downside84.15%92.49%101.13%

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