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SouthState Corporation (SSB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$170.67 - $452.73$260.97
Multi-Stage$117.67 - $128.52$123.00
Blended Fair Value$191.98
Current Price$98.87
Upside94.18%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS23.07%23.47%1.701.631.541.421.030.600.530.400.310.25
YoY Growth--4.30%6.49%8.37%37.74%70.30%14.12%30.90%31.89%23.51%19.84%
Dividend Yield--1.84%1.96%2.15%1.74%1.31%1.03%0.75%0.47%0.34%0.39%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)695.12
(-) Cash Dividends Paid (M)212.53
(=) Cash Retained (M)482.59
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)139.0286.8952.13
Cash Retained (M)482.59482.59482.59
(-) Cash Required (M)-139.02-86.89-52.13
(=) Excess Retained (M)343.56395.70430.45
(/) Shares Outstanding (M)95.5495.5495.54
(=) Excess Retained per Share3.604.144.51
LTM Dividend per Share2.222.222.22
(+) Excess Retained per Share3.604.144.51
(=) Adjusted Dividend5.826.376.73
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$170.67$260.97$452.73
Upside / Downside72.62%163.95%357.90%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)695.12740.31788.43839.67894.25952.38980.95
Payout Ratio30.58%42.46%54.35%66.23%78.12%90.00%92.50%
Projected Dividends (M)212.53314.33428.47556.12698.55857.14907.38

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)285.42288.12290.83
Year 2 PV (M)353.26359.99366.78
Year 3 PV (M)416.32428.27440.44
Year 4 PV (M)474.83493.09511.87
Year 5 PV (M)529.03554.59581.12
PV of Terminal Value (M)9,183.999,627.5810,088.15
Equity Value (M)11,242.8511,751.6412,279.19
Shares Outstanding (M)95.5495.5495.54
Fair Value$117.67$123.00$128.52
Upside / Downside19.02%24.40%29.99%

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