Definitive Analysis
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The First Bancorp, Inc. (FNLC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$45.16 - $86.70$61.80
Multi-Stage$43.16 - $47.15$45.12
Blended Fair Value$53.46
Current Price$26.26
Upside103.59%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.04%5.92%1.411.381.321.251.191.161.081.020.880.84
YoY Growth--2.50%4.32%5.96%4.64%2.82%7.56%5.17%16.82%4.93%5.13%
Dividend Yield--5.71%5.65%5.10%4.14%4.08%5.26%4.22%3.66%3.22%4.28%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)31.50
(-) Cash Dividends Paid (M)14.30
(=) Cash Retained (M)17.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.303.942.36
Cash Retained (M)17.2017.2017.20
(-) Cash Required (M)-6.30-3.94-2.36
(=) Excess Retained (M)10.9013.2614.84
(/) Shares Outstanding (M)11.2011.2011.20
(=) Excess Retained per Share0.971.181.33
LTM Dividend per Share1.281.281.28
(+) Excess Retained per Share0.971.181.33
(=) Adjusted Dividend2.252.462.60
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.92%4.92%5.92%
Fair Value$45.16$61.80$86.70
Upside / Downside71.98%135.34%230.14%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)31.5033.0534.6836.3838.1740.0541.25
Payout Ratio45.40%54.32%63.24%72.16%81.08%90.00%92.50%
Projected Dividends (M)14.3017.9621.9326.2630.9536.0538.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.92%4.92%5.92%
Year 1 PV (M)16.3016.4616.62
Year 2 PV (M)18.0818.4318.78
Year 3 PV (M)19.6520.2220.80
Year 4 PV (M)21.0321.8522.69
Year 5 PV (M)22.2323.3224.46
PV of Terminal Value (M)385.94404.87424.54
Equity Value (M)483.23505.15527.89
Shares Outstanding (M)11.2011.2011.20
Fair Value$43.16$45.12$47.15
Upside / Downside64.37%71.83%79.56%

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