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MSC Income Fund, Inc. (MSIF)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$12.50 - $17.99$15.18
Multi-Stage$19.82 - $21.79$20.78
Blended Fair Value$17.98
Current Price$13.13
Upside36.95%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.73%0.00%0.890.810.740.420.410.670.640.590.500.34
YoY Growth--9.11%10.36%76.33%1.25%-38.53%5.53%8.16%17.88%46.13%0.00%
Dividend Yield--5.39%5.14%4.66%2.64%2.61%4.24%4.02%3.72%3.15%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)79.16
(-) Cash Dividends Paid (M)10.07
(=) Cash Retained (M)69.09
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)15.839.895.94
Cash Retained (M)69.0969.0969.09
(-) Cash Required (M)-15.83-9.89-5.94
(=) Excess Retained (M)53.2659.1963.15
(/) Shares Outstanding (M)44.8244.8244.82
(=) Excess Retained per Share1.191.321.41
LTM Dividend per Share0.220.220.22
(+) Excess Retained per Share1.191.321.41
(=) Adjusted Dividend1.411.551.63
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$12.50$15.18$17.99
Upside / Downside-4.82%15.60%37.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)79.1678.3777.5876.8176.0475.2877.54
Payout Ratio12.72%28.18%43.63%59.09%74.54%90.00%92.50%
Projected Dividends (M)10.0722.0833.8545.3856.6867.7571.72

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)20.0420.2420.45
Year 2 PV (M)27.8828.4529.03
Year 3 PV (M)33.9234.9736.04
Year 4 PV (M)38.4440.0441.68
Year 5 PV (M)41.7043.8746.13
PV of Terminal Value (M)726.05763.86803.23
Equity Value (M)888.03931.43976.55
Shares Outstanding (M)44.8244.8244.82
Fair Value$19.82$20.78$21.79
Upside / Downside50.91%58.29%65.96%

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