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Amalgamated Financial Corp. (AMAL)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$78.40 - $209.28$120.11
Multi-Stage$53.07 - $58.01$55.49
Blended Fair Value$87.80
Current Price$27.15
Upside223.39%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.39%0.00%0.460.400.360.320.320.270.060.010.000.00
YoY Growth--15.41%10.01%12.36%-0.09%20.31%330.33%389.59%0.00%0.00%0.00%
Dividend Yield--1.61%1.73%2.06%1.80%1.96%2.49%0.41%0.10%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)102.30
(-) Cash Dividends Paid (M)16.70
(=) Cash Retained (M)85.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)20.4612.797.67
Cash Retained (M)85.6085.6085.60
(-) Cash Required (M)-20.46-12.79-7.67
(=) Excess Retained (M)65.1472.8177.93
(/) Shares Outstanding (M)30.7630.7630.76
(=) Excess Retained per Share2.122.372.53
LTM Dividend per Share0.540.540.54
(+) Excess Retained per Share2.122.372.53
(=) Adjusted Dividend2.662.913.08
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$78.40$120.11$209.28
Upside / Downside188.75%342.39%670.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)102.30108.95116.03123.57131.60140.16144.36
Payout Ratio16.32%31.06%45.79%60.53%75.26%90.00%92.50%
Projected Dividends (M)16.7033.8453.1374.8099.05126.14133.53

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)30.7331.0231.31
Year 2 PV (M)43.8244.6645.50
Year 3 PV (M)56.0257.6359.27
Year 4 PV (M)67.3769.9672.63
Year 5 PV (M)77.9281.6885.59
PV of Terminal Value (M)1,356.671,422.201,490.24
Equity Value (M)1,632.531,707.151,784.53
Shares Outstanding (M)30.7630.7630.76
Fair Value$53.07$55.49$58.01
Upside / Downside95.46%104.40%113.66%

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