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SR Bancorp, Inc. Common stock (SRBK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$3.83 - $5.52$4.65
Multi-Stage$6.04 - $6.64$6.34
Blended Fair Value$5.50
Current Price$15.09
Upside-63.58%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20252024202320222021
DPS0.00%0.00%0.050.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.36%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4.46
(-) Cash Dividends Paid (M)0.43
(=) Cash Retained (M)4.03
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.890.560.33
Cash Retained (M)4.034.034.03
(-) Cash Required (M)-0.89-0.56-0.33
(=) Excess Retained (M)3.143.483.70
(/) Shares Outstanding (M)8.228.228.22
(=) Excess Retained per Share0.380.420.45
LTM Dividend per Share0.050.050.05
(+) Excess Retained per Share0.380.420.45
(=) Adjusted Dividend0.430.470.50
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3.83$4.65$5.52
Upside / Downside-74.60%-69.16%-63.44%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4.464.424.374.334.294.244.37
Payout Ratio9.61%25.69%41.77%57.85%73.92%90.00%92.50%
Projected Dividends (M)0.431.131.832.503.173.824.04

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)1.031.041.05
Year 2 PV (M)1.501.531.57
Year 3 PV (M)1.871.931.99
Year 4 PV (M)2.152.242.33
Year 5 PV (M)2.352.472.60
PV of Terminal Value (M)40.7742.9045.11
Equity Value (M)49.6752.1154.64
Shares Outstanding (M)8.228.228.22
Fair Value$6.04$6.34$6.64
Upside / Downside-59.97%-58.01%-55.97%

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