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Kemper Corporation 5.875% Fixed (KMPB)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$41.00 - $65.28$52.04
Multi-Stage$52.46 - $57.46$54.92
Blended Fair Value$53.48
Current Price$51.55
Upside3.74%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.39%4.46%1.251.251.251.261.241.060.880.780.770.78
YoY Growth--0.00%0.50%-1.12%2.15%16.37%20.21%13.94%0.61%-1.01%-4.05%
Dividend Yield--1.88%2.06%2.28%2.23%1.55%1.43%1.14%1.36%1.93%2.63%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)248.70
(-) Cash Dividends Paid (M)80.70
(=) Cash Retained (M)168.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)49.7431.0918.65
Cash Retained (M)168.00168.00168.00
(-) Cash Required (M)-49.74-31.09-18.65
(=) Excess Retained (M)118.26136.91149.35
(/) Shares Outstanding (M)63.8463.8463.84
(=) Excess Retained per Share1.852.142.34
LTM Dividend per Share1.261.261.26
(+) Excess Retained per Share1.852.142.34
(=) Adjusted Dividend3.123.413.60
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.39%2.39%3.39%
Fair Value$41.00$52.04$65.28
Upside / Downside-20.46%0.95%26.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)248.70254.65260.73266.97273.35279.88288.28
Payout Ratio32.45%43.96%55.47%66.98%78.49%90.00%92.50%
Projected Dividends (M)80.70111.94144.63178.81214.55251.89266.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.39%2.39%3.39%
Year 1 PV (M)101.60102.60103.61
Year 2 PV (M)119.15121.51123.90
Year 3 PV (M)133.71137.70141.78
Year 4 PV (M)145.62151.45157.45
Year 5 PV (M)155.17162.98171.09
PV of Terminal Value (M)2,693.822,829.322,970.20
Equity Value (M)3,349.083,505.563,668.03
Shares Outstanding (M)63.8463.8463.84
Fair Value$52.46$54.92$57.46
Upside / Downside1.77%6.53%11.47%

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