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First Financial Bancorp. (FFBC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$59.71 - $158.39$91.30
Multi-Stage$41.53 - $45.34$43.40
Blended Fair Value$67.35
Current Price$25.25
Upside166.74%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.10%9.90%0.940.910.910.910.940.930.830.430.410.41
YoY Growth--2.74%0.64%-0.81%-2.65%0.67%11.85%93.44%5.25%0.14%12.12%
Dividend Yield--3.75%4.16%4.16%3.96%3.91%6.25%3.38%1.47%1.49%2.25%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)243.41
(-) Cash Dividends Paid (M)92.91
(=) Cash Retained (M)150.51
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)48.6830.4318.26
Cash Retained (M)150.51150.51150.51
(-) Cash Required (M)-48.68-30.43-18.26
(=) Excess Retained (M)101.83120.08132.25
(/) Shares Outstanding (M)95.6395.6395.63
(=) Excess Retained per Share1.061.261.38
LTM Dividend per Share0.970.970.97
(+) Excess Retained per Share1.061.261.38
(=) Adjusted Dividend2.042.232.35
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$59.71$91.30$158.39
Upside / Downside136.47%261.59%527.30%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)243.41259.23276.09294.03313.14333.50343.50
Payout Ratio38.17%48.53%58.90%69.27%79.63%90.00%92.50%
Projected Dividends (M)92.91125.82162.62203.67249.37300.15317.74

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)114.24115.33116.41
Year 2 PV (M)134.07136.62139.20
Year 3 PV (M)152.47156.84161.30
Year 4 PV (M)169.50176.02182.73
Year 5 PV (M)185.25194.20203.49
PV of Terminal Value (M)3,215.983,371.323,532.59
Equity Value (M)3,971.524,150.334,335.73
Shares Outstanding (M)95.6395.6395.63
Fair Value$41.53$43.40$45.34
Upside / Downside64.48%71.89%79.56%

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