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Amerant Bancorp Inc. (AMTB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$11.19 - $16.11$13.59
Multi-Stage$17.98 - $19.76$18.85
Blended Fair Value$16.22
Current Price$19.27
Upside-15.82%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.310.290.290.000.000.000.950.000.000.00
YoY Growth--6.27%-1.37%0.00%0.00%0.00%-100.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.48%1.26%1.34%0.00%0.00%0.00%6.46%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)66.60
(-) Cash Dividends Paid (M)15.19
(=) Cash Retained (M)51.41
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.328.324.99
Cash Retained (M)51.4151.4151.41
(-) Cash Required (M)-13.32-8.32-4.99
(=) Excess Retained (M)38.0943.0946.42
(/) Shares Outstanding (M)42.0342.0342.03
(=) Excess Retained per Share0.911.031.10
LTM Dividend per Share0.360.360.36
(+) Excess Retained per Share0.911.031.10
(=) Adjusted Dividend1.271.391.47
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$11.19$13.59$16.11
Upside / Downside-41.91%-29.46%-16.39%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)66.6065.9365.2764.6263.9763.3365.23
Payout Ratio22.80%36.24%49.68%63.12%76.56%90.00%92.50%
Projected Dividends (M)15.1923.8932.4340.7948.9857.0060.34

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)21.6821.9022.12
Year 2 PV (M)26.7027.2527.80
Year 3 PV (M)30.4731.4132.37
Year 4 PV (M)33.2034.5735.99
Year 5 PV (M)35.0536.8838.78
PV of Terminal Value (M)608.54640.23673.23
Equity Value (M)755.64792.24830.29
Shares Outstanding (M)42.0342.0342.03
Fair Value$17.98$18.85$19.76
Upside / Downside-6.70%-2.18%2.52%

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