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Bar Harbor Bankshares (BHB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$54.37 - $144.24$83.14
Multi-Stage$38.51 - $42.01$40.23
Blended Fair Value$61.68
Current Price$30.46
Upside102.51%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.88%12.74%1.141.060.980.900.860.860.780.740.420.39
YoY Growth--7.38%8.03%8.97%4.88%0.38%9.70%5.90%74.93%8.89%12.64%
Dividend Yield--3.87%4.14%3.72%3.15%2.92%4.96%2.95%2.66%1.27%1.75%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)36.16
(-) Cash Dividends Paid (M)19.56
(=) Cash Retained (M)16.59
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.234.522.71
Cash Retained (M)16.5916.5916.59
(-) Cash Required (M)-7.23-4.52-2.71
(=) Excess Retained (M)9.3612.0713.88
(/) Shares Outstanding (M)15.6015.6015.60
(=) Excess Retained per Share0.600.770.89
LTM Dividend per Share1.251.251.25
(+) Excess Retained per Share0.600.770.89
(=) Adjusted Dividend1.852.032.14
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$54.37$83.14$144.24
Upside / Downside78.51%172.96%373.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)36.1638.5141.0143.6846.5149.5451.02
Payout Ratio54.11%61.28%68.46%75.64%82.82%90.00%92.50%
Projected Dividends (M)19.5623.6028.0833.0438.5244.5847.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)21.4321.6321.83
Year 2 PV (M)23.1523.5924.03
Year 3 PV (M)24.7325.4426.17
Year 4 PV (M)26.1927.1928.23
Year 5 PV (M)27.5228.8530.23
PV of Terminal Value (M)477.71500.78524.74
Equity Value (M)600.72627.48655.23
Shares Outstanding (M)15.6015.6015.60
Fair Value$38.51$40.23$42.01
Upside / Downside26.43%32.06%37.90%

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