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Investar Holding Corporation (ISTR)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$52.24 - $138.58$79.88
Multi-Stage$35.50 - $38.80$37.12
Blended Fair Value$58.50
Current Price$23.21
Upside152.05%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.88%35.24%0.380.370.340.300.260.210.140.070.030.02
YoY Growth--3.33%8.22%14.95%15.04%23.95%47.62%103.32%159.71%25.79%13.92%
Dividend Yield--2.18%2.27%2.46%1.56%1.26%1.64%0.62%0.27%0.12%0.15%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)23.07
(-) Cash Dividends Paid (M)4.18
(=) Cash Retained (M)18.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.612.881.73
Cash Retained (M)18.9018.9018.90
(-) Cash Required (M)-4.61-2.88-1.73
(=) Excess Retained (M)14.2816.0117.16
(/) Shares Outstanding (M)10.3610.3610.36
(=) Excess Retained per Share1.381.551.66
LTM Dividend per Share0.400.400.40
(+) Excess Retained per Share1.381.551.66
(=) Adjusted Dividend1.781.952.06
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$52.24$79.88$138.58
Upside / Downside125.08%244.17%497.08%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)23.0724.5726.1727.8729.6831.6132.56
Payout Ratio18.11%32.49%46.86%61.24%75.62%90.00%92.50%
Projected Dividends (M)4.187.9812.2617.0722.4528.4530.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)7.257.327.39
Year 2 PV (M)10.1110.3010.50
Year 3 PV (M)12.7813.1413.52
Year 4 PV (M)15.2615.8416.45
Year 5 PV (M)17.5618.4119.29
PV of Terminal Value (M)304.84319.57334.85
Equity Value (M)367.80384.58401.99
Shares Outstanding (M)10.3610.3610.36
Fair Value$35.50$37.12$38.80
Upside / Downside52.95%59.94%67.18%

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