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The First Bancorp, Inc. (FNLC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$45.32 - $87.19$62.07
Multi-Stage$43.30 - $47.30$45.26
Blended Fair Value$53.67
Current Price$26.26
Upside104.36%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.04%5.92%1.411.381.321.251.191.161.081.020.880.84
YoY Growth--2.50%4.32%5.96%4.64%2.82%7.56%5.17%16.82%4.93%5.13%
Dividend Yield--5.71%5.65%5.10%4.14%4.08%5.26%4.22%3.66%3.22%4.28%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)31.50
(-) Cash Dividends Paid (M)14.30
(=) Cash Retained (M)17.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.303.942.36
Cash Retained (M)17.2017.2017.20
(-) Cash Required (M)-6.30-3.94-2.36
(=) Excess Retained (M)10.9013.2614.84
(/) Shares Outstanding (M)11.2011.2011.20
(=) Excess Retained per Share0.971.181.33
LTM Dividend per Share1.281.281.28
(+) Excess Retained per Share0.971.181.33
(=) Adjusted Dividend2.252.462.60
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.92%4.92%5.92%
Fair Value$45.32$62.07$87.19
Upside / Downside72.58%136.36%232.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)31.5033.0534.6836.3838.1740.0541.25
Payout Ratio45.40%54.32%63.24%72.16%81.08%90.00%92.50%
Projected Dividends (M)14.3017.9621.9326.2630.9536.0538.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.92%4.92%5.92%
Year 1 PV (M)16.3016.4616.62
Year 2 PV (M)18.0818.4318.79
Year 3 PV (M)19.6620.2320.81
Year 4 PV (M)21.0421.8622.71
Year 5 PV (M)22.2523.3424.48
PV of Terminal Value (M)387.41406.41426.15
Equity Value (M)484.74506.73529.55
Shares Outstanding (M)11.2011.2011.20
Fair Value$43.30$45.26$47.30
Upside / Downside64.88%72.37%80.13%

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