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Richmond Mutual Bancorporation, Inc. (RMBI)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$7.47 - $10.75$9.07
Multi-Stage$12.54 - $13.75$13.14
Blended Fair Value$11.10
Current Price$14.21
Upside-21.85%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS0.00%0.00%0.570.590.440.920.180.000.050.000.000.00
YoY Growth---3.78%34.34%-52.49%404.46%0.00%-100.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.42%5.07%4.22%5.40%1.35%0.00%0.36%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)10.64
(-) Cash Dividends Paid (M)5.78
(=) Cash Retained (M)4.86
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.131.330.80
Cash Retained (M)4.864.864.86
(-) Cash Required (M)-2.13-1.33-0.80
(=) Excess Retained (M)2.733.534.06
(/) Shares Outstanding (M)10.0610.0610.06
(=) Excess Retained per Share0.270.350.40
LTM Dividend per Share0.570.570.57
(+) Excess Retained per Share0.270.350.40
(=) Adjusted Dividend0.850.930.98
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$7.47$9.07$10.75
Upside / Downside-47.41%-36.14%-24.32%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)10.6410.5410.4310.3310.2210.1210.43
Payout Ratio54.33%61.46%68.60%75.73%82.87%90.00%92.50%
Projected Dividends (M)5.786.487.167.828.479.119.64

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)5.885.946.00
Year 2 PV (M)5.896.016.13
Year 3 PV (M)5.846.026.21
Year 4 PV (M)5.745.986.23
Year 5 PV (M)5.605.896.20
PV of Terminal Value (M)97.25102.32107.59
Equity Value (M)126.21132.16138.35
Shares Outstanding (M)10.0610.0610.06
Fair Value$12.54$13.14$13.75
Upside / Downside-11.73%-7.56%-3.23%

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