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Unitil Corporation (UTL)

Company Dividend Discount ModelIndustry: Diversified UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$31.22 - $50.35$39.84
Multi-Stage$40.40 - $44.15$42.24
Blended Fair Value$41.04
Current Price$52.15
Upside-21.30%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.47%3.66%1.681.601.531.441.381.351.331.251.221.20
YoY Growth--4.96%4.38%6.36%4.42%2.26%1.38%6.86%2.00%2.04%2.08%
Dividend Yield--2.91%3.09%2.69%2.89%3.02%2.58%2.46%2.68%2.71%2.82%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)46.80
(-) Cash Dividends Paid (M)28.90
(=) Cash Retained (M)17.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.365.853.51
Cash Retained (M)17.9017.9017.90
(-) Cash Required (M)-9.36-5.85-3.51
(=) Excess Retained (M)8.5412.0514.39
(/) Shares Outstanding (M)16.3816.3816.38
(=) Excess Retained per Share0.520.740.88
LTM Dividend per Share1.761.761.76
(+) Excess Retained per Share0.520.740.88
(=) Adjusted Dividend2.292.502.64
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.66%2.66%3.66%
Fair Value$31.22$39.84$50.35
Upside / Downside-40.13%-23.60%-3.46%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)46.8048.0449.3250.6351.9853.3654.96
Payout Ratio61.75%67.40%73.05%78.70%84.35%90.00%92.50%
Projected Dividends (M)28.9032.3836.0339.8543.8448.0250.84

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.66%2.66%3.66%
Year 1 PV (M)29.3929.6829.97
Year 2 PV (M)29.6830.2730.86
Year 3 PV (M)29.8030.6931.59
Year 4 PV (M)29.7630.9532.17
Year 5 PV (M)29.5931.0732.62
PV of Terminal Value (M)513.64539.41566.20
Equity Value (M)661.87692.07723.41
Shares Outstanding (M)16.3816.3816.38
Fair Value$40.40$42.24$44.15
Upside / Downside-22.54%-19.00%-15.33%

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