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Pathward Financial, Inc. (CASH)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$83.64 - $133.40$106.23
Multi-Stage$102.55 - $112.55$107.45
Blended Fair Value$106.84
Current Price$74.01
Upside44.36%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-7.97%2.98%0.200.220.230.250.270.300.330.240.210.19
YoY Growth---7.52%-6.62%-8.36%-7.48%-9.86%-8.51%35.29%18.54%10.25%25.65%
Dividend Yield--0.27%0.29%0.44%0.59%0.46%0.83%0.90%1.26%0.67%0.54%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)185.87
(-) Cash Dividends Paid (M)4.69
(=) Cash Retained (M)181.19
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)37.1723.2313.94
Cash Retained (M)181.19181.19181.19
(-) Cash Required (M)-37.17-23.23-13.94
(=) Excess Retained (M)144.01157.95167.25
(/) Shares Outstanding (M)23.5123.5123.51
(=) Excess Retained per Share6.136.727.11
LTM Dividend per Share0.200.200.20
(+) Excess Retained per Share6.136.727.11
(=) Adjusted Dividend6.336.927.31
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.43%2.43%3.43%
Fair Value$83.64$106.23$133.40
Upside / Downside13.01%43.54%80.25%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)185.87190.38195.01199.74204.59209.56215.84
Payout Ratio2.52%20.02%37.51%55.01%72.50%90.00%92.50%
Projected Dividends (M)4.6938.1173.15109.87148.34188.60199.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.43%2.43%3.43%
Year 1 PV (M)34.5934.9335.27
Year 2 PV (M)60.2761.4662.67
Year 3 PV (M)82.1684.6187.12
Year 4 PV (M)100.68104.71108.86
Year 5 PV (M)116.19122.03128.10
PV of Terminal Value (M)2,017.002,118.422,223.86
Equity Value (M)2,410.892,526.162,645.88
Shares Outstanding (M)23.5123.5123.51
Fair Value$102.55$107.45$112.55
Upside / Downside38.56%45.19%52.07%

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