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SB Financial Group, Inc. (SBFG)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$49.66 - $131.72$75.93
Multi-Stage$34.14 - $37.29$35.68
Blended Fair Value$55.81
Current Price$19.29
Upside189.30%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.09%17.02%0.580.550.530.490.470.360.320.210.180.15
YoY Growth--5.19%4.95%8.79%2.25%31.70%11.53%53.45%15.42%20.04%25.54%
Dividend Yield--2.80%3.97%3.74%2.44%2.73%3.40%1.88%1.20%1.15%1.55%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)13.69
(-) Cash Dividends Paid (M)3.84
(=) Cash Retained (M)9.86
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.741.711.03
Cash Retained (M)9.869.869.86
(-) Cash Required (M)-2.74-1.71-1.03
(=) Excess Retained (M)7.128.148.83
(/) Shares Outstanding (M)6.476.476.47
(=) Excess Retained per Share1.101.261.36
LTM Dividend per Share0.590.590.59
(+) Excess Retained per Share1.101.261.36
(=) Adjusted Dividend1.691.851.96
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$49.66$75.93$131.72
Upside / Downside157.41%293.61%582.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)13.6914.5815.5316.5417.6118.7619.32
Payout Ratio28.02%40.41%52.81%65.21%77.60%90.00%92.50%
Projected Dividends (M)3.845.898.2010.7813.6716.8817.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5.355.405.45
Year 2 PV (M)6.766.897.02
Year 3 PV (M)8.078.308.54
Year 4 PV (M)9.299.6510.02
Year 5 PV (M)10.4210.9211.45
PV of Terminal Value (M)180.89189.62198.69
Equity Value (M)220.78230.79241.17
Shares Outstanding (M)6.476.476.47
Fair Value$34.14$35.68$37.29
Upside / Downside76.96%84.98%93.30%

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