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Hanmi Financial Corporation (HAFC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$56.69 - $150.37$86.68
Multi-Stage$39.70 - $43.33$41.48
Blended Fair Value$64.08
Current Price$24.69
Upside159.54%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.40%16.33%1.011.020.950.550.530.991.030.860.850.43
YoY Growth---0.51%6.63%73.40%3.47%-46.40%-3.70%19.80%0.58%100.74%90.96%
Dividend Yield--4.47%6.57%5.14%2.24%2.69%9.14%4.72%2.80%2.78%1.93%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)72.55
(-) Cash Dividends Paid (M)32.08
(=) Cash Retained (M)40.47
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.519.075.44
Cash Retained (M)40.4740.4740.47
(-) Cash Required (M)-14.51-9.07-5.44
(=) Excess Retained (M)25.9631.4035.02
(/) Shares Outstanding (M)30.0230.0230.02
(=) Excess Retained per Share0.861.051.17
LTM Dividend per Share1.071.071.07
(+) Excess Retained per Share0.861.051.17
(=) Adjusted Dividend1.932.112.24
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$56.69$86.68$150.37
Upside / Downside129.59%251.07%509.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)72.5577.2682.2887.6393.3399.39102.37
Payout Ratio44.22%53.38%62.53%71.69%80.84%90.00%92.50%
Projected Dividends (M)32.0841.2451.4562.8275.4589.4594.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)37.4537.8038.15
Year 2 PV (M)42.4243.2344.04
Year 3 PV (M)47.0348.3849.75
Year 4 PV (M)51.2953.2655.29
Year 5 PV (M)55.2157.8860.65
PV of Terminal Value (M)958.471,004.761,052.83
Equity Value (M)1,191.861,245.311,300.72
Shares Outstanding (M)30.0230.0230.02
Fair Value$39.70$41.48$43.33
Upside / Downside60.80%68.01%75.49%

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