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Hanover Bancorp, Inc. (HNVR)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$10.80 - $15.54$13.12
Multi-Stage$17.44 - $19.15$18.28
Blended Fair Value$15.70
Current Price$22.45
Upside-30.08%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS0.00%0.00%0.400.390.270.000.000.000.000.000.000.00
YoY Growth--1.06%43.44%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.82%2.25%1.35%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)11.36
(-) Cash Dividends Paid (M)2.99
(=) Cash Retained (M)8.37
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.271.420.85
Cash Retained (M)8.378.378.37
(-) Cash Required (M)-2.27-1.42-0.85
(=) Excess Retained (M)6.106.957.52
(/) Shares Outstanding (M)7.437.437.43
(=) Excess Retained per Share0.820.941.01
LTM Dividend per Share0.400.400.40
(+) Excess Retained per Share0.820.941.01
(=) Adjusted Dividend1.221.341.41
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$10.80$13.12$15.54
Upside / Downside-51.89%-41.58%-30.76%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)11.3611.2411.1311.0210.9110.8011.12
Payout Ratio26.32%39.05%51.79%64.53%77.26%90.00%92.50%
Projected Dividends (M)2.994.395.767.118.439.7210.29

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)3.984.024.07
Year 2 PV (M)4.754.844.94
Year 3 PV (M)5.315.485.64
Year 4 PV (M)5.715.956.19
Year 5 PV (M)5.986.296.61
PV of Terminal Value (M)103.78109.18114.81
Equity Value (M)129.51135.76142.27
Shares Outstanding (M)7.437.437.43
Fair Value$17.44$18.28$19.15
Upside / Downside-22.34%-18.59%-14.69%

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