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MidWestOne Financial Group, Inc. (MOFG)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$65.88 - $174.77$100.74
Multi-Stage$45.52 - $49.72$47.58
Blended Fair Value$74.16
Current Price$28.29
Upside162.15%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.54%12.99%0.790.730.710.690.680.550.460.390.350.30
YoY Growth--8.50%2.33%4.12%0.75%23.52%20.36%18.29%10.17%15.34%30.32%
Dividend Yield--2.68%3.20%2.93%2.07%2.20%2.63%1.60%1.16%1.03%1.11%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)58.46
(-) Cash Dividends Paid (M)18.96
(=) Cash Retained (M)39.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11.697.314.38
Cash Retained (M)39.5039.5039.50
(-) Cash Required (M)-11.69-7.31-4.38
(=) Excess Retained (M)27.8132.1935.11
(/) Shares Outstanding (M)20.8220.8220.82
(=) Excess Retained per Share1.341.551.69
LTM Dividend per Share0.910.910.91
(+) Excess Retained per Share1.341.551.69
(=) Adjusted Dividend2.252.462.60
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$65.88$100.74$174.77
Upside / Downside132.89%256.11%517.79%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)58.4662.2666.3170.6275.2180.1082.50
Payout Ratio32.44%43.95%55.46%66.98%78.49%90.00%92.50%
Projected Dividends (M)18.9627.3636.7847.3059.0372.0976.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)24.8525.0825.32
Year 2 PV (M)30.3230.9031.48
Year 3 PV (M)35.4136.4237.46
Year 4 PV (M)40.1341.6743.26
Year 5 PV (M)44.4946.6448.87
PV of Terminal Value (M)772.42809.72848.46
Equity Value (M)947.61990.441,034.85
Shares Outstanding (M)20.8220.8220.82
Fair Value$45.52$47.58$49.72
Upside / Downside60.92%68.20%75.74%

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