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First BanCorp. (FBP)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$48.22 - $128.72$73.87
Multi-Stage$33.32 - $36.38$34.82
Blended Fair Value$54.35
Current Price$22.05
Upside146.48%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS28.31%0.00%0.650.610.540.400.270.190.040.000.000.00
YoY Growth--5.93%13.48%35.07%49.76%43.02%365.80%0.00%0.00%0.00%0.00%
Dividend Yield--3.38%3.53%4.72%3.04%2.36%3.50%0.34%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)333.47
(-) Cash Dividends Paid (M)113.57
(=) Cash Retained (M)219.89
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)66.6941.6825.01
Cash Retained (M)219.89219.89219.89
(-) Cash Required (M)-66.69-41.68-25.01
(=) Excess Retained (M)153.20178.21194.88
(/) Shares Outstanding (M)163.04163.04163.04
(=) Excess Retained per Share0.941.091.20
LTM Dividend per Share0.700.700.70
(+) Excess Retained per Share0.941.091.20
(=) Adjusted Dividend1.641.791.89
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$48.22$73.87$128.72
Upside / Downside118.68%235.03%483.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)333.47355.14378.23402.81428.99456.88470.58
Payout Ratio34.06%45.25%56.44%67.62%78.81%90.00%92.50%
Projected Dividends (M)113.57160.69213.45272.39338.10411.19435.29

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)145.93147.31148.70
Year 2 PV (M)176.04179.40182.78
Year 3 PV (M)204.02209.88215.84
Year 4 PV (M)229.97238.81247.91
Year 5 PV (M)254.00266.27279.00
PV of Terminal Value (M)4,422.464,636.064,857.84
Equity Value (M)5,432.425,677.735,932.08
Shares Outstanding (M)163.04163.04163.04
Fair Value$33.32$34.82$36.38
Upside / Downside51.11%57.93%65.01%

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