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TrustCo Bank Corp NY (TRST)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$23.45 - $34.50$28.76
Multi-Stage$36.90 - $40.45$38.64
Blended Fair Value$33.70
Current Price$36.30
Upside-7.17%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.76%0.98%1.441.441.421.381.381.391.341.321.321.31
YoY Growth--0.08%1.47%2.71%-0.20%-0.20%3.19%1.48%0.53%0.46%0.40%
Dividend Yield--4.73%5.13%4.44%4.33%3.76%5.13%3.42%3.14%3.36%4.33%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)56.85
(-) Cash Dividends Paid (M)27.37
(=) Cash Retained (M)29.49
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11.377.114.26
Cash Retained (M)29.4929.4929.49
(-) Cash Required (M)-11.37-7.11-4.26
(=) Excess Retained (M)18.1222.3825.22
(/) Shares Outstanding (M)19.0219.0219.02
(=) Excess Retained per Share0.951.181.33
LTM Dividend per Share1.441.441.44
(+) Excess Retained per Share0.951.181.33
(=) Adjusted Dividend2.392.622.77
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-1.02%-0.02%0.98%
Fair Value$23.45$28.76$34.50
Upside / Downside-35.40%-20.78%-4.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)56.8556.8456.8456.8356.8256.8158.51
Payout Ratio48.14%56.51%64.88%73.25%81.63%90.00%92.50%
Projected Dividends (M)27.3732.1236.8841.6346.3851.1354.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-1.02%-0.02%0.98%
Year 1 PV (M)29.1529.4529.74
Year 2 PV (M)30.3830.9931.62
Year 3 PV (M)31.1232.0733.05
Year 4 PV (M)31.4732.7634.09
Year 5 PV (M)31.4933.1134.80
PV of Terminal Value (M)548.20576.46605.87
Equity Value (M)701.81734.84769.16
Shares Outstanding (M)19.0219.0219.02
Fair Value$36.90$38.64$40.45
Upside / Downside1.66%6.45%11.42%

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