Definitive Analysis
Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Cadence Bank (CADE)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$59.33 - $138.76$87.13
Multi-Stage$42.92 - $46.84$44.84
Blended Fair Value$65.98
Current Price$37.54
Upside75.77%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS20.21%22.51%0.980.920.860.530.410.390.330.260.230.18
YoY Growth--6.31%6.85%61.97%29.82%5.09%18.23%27.27%14.29%26.80%39.13%
Dividend Yield--3.21%3.20%4.14%1.81%1.26%2.05%1.12%0.81%0.75%0.84%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)530.43
(-) Cash Dividends Paid (M)198.85
(=) Cash Retained (M)331.58
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)106.0966.3039.78
Cash Retained (M)331.58331.58331.58
(-) Cash Required (M)-106.09-66.30-39.78
(=) Excess Retained (M)225.50265.28291.80
(/) Shares Outstanding (M)187.21187.21187.21
(=) Excess Retained per Share1.201.421.56
LTM Dividend per Share1.061.061.06
(+) Excess Retained per Share1.201.421.56
(=) Adjusted Dividend2.272.482.62
WACC / Discount Rate9.53%9.53%9.53%
Growth Rate5.50%6.50%7.50%
Fair Value$59.33$87.13$138.76
Upside / Downside58.05%132.09%269.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)530.43564.91601.63640.73682.38726.74748.54
Payout Ratio37.49%47.99%58.49%69.00%79.50%90.00%92.50%
Projected Dividends (M)198.85271.10351.91442.08542.48654.06692.40

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.53%9.53%9.53%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)245.19247.51249.84
Year 2 PV (M)287.85293.33298.87
Year 3 PV (M)327.04336.43345.99
Year 4 PV (M)362.96376.91391.27
Year 5 PV (M)395.79414.90434.75
PV of Terminal Value (M)6,415.946,725.837,047.58
Equity Value (M)8,034.768,394.928,768.30
Shares Outstanding (M)187.21187.21187.21
Fair Value$42.92$44.84$46.84
Upside / Downside14.32%19.45%24.76%

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