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Premier Financial Corp. (PFC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$42.78 - $113.48$65.42
Multi-Stage$30.78 - $33.54$32.14
Blended Fair Value$48.78
Current Price$25.57
Upside90.75%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS23.24%22.29%1.241.241.201.090.920.440.360.280.220.20
YoY Growth--0.32%3.44%9.88%18.39%110.56%19.79%32.30%24.96%10.21%20.58%
Dividend Yield--4.86%6.15%5.77%3.59%2.77%2.96%1.25%0.96%0.89%1.04%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)65.24
(-) Cash Dividends Paid (M)44.41
(=) Cash Retained (M)20.83
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.058.154.89
Cash Retained (M)20.8320.8320.83
(-) Cash Required (M)-13.05-8.15-4.89
(=) Excess Retained (M)7.7812.6715.93
(/) Shares Outstanding (M)35.7735.7735.77
(=) Excess Retained per Share0.220.350.45
LTM Dividend per Share1.241.241.24
(+) Excess Retained per Share0.220.350.45
(=) Adjusted Dividend1.461.601.69
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$42.78$65.42$113.48
Upside / Downside67.31%155.83%343.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)65.2469.4873.9978.8083.9289.3892.06
Payout Ratio68.07%72.46%76.84%81.23%85.61%90.00%92.50%
Projected Dividends (M)44.4150.3456.8664.0171.8580.4485.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)45.7146.1446.58
Year 2 PV (M)46.8847.7748.67
Year 3 PV (M)47.9249.2950.70
Year 4 PV (M)48.8450.7252.65
Year 5 PV (M)49.6552.0554.54
PV of Terminal Value (M)861.90903.53946.75
Equity Value (M)1,100.901,149.511,199.89
Shares Outstanding (M)35.7735.7735.77
Fair Value$30.78$32.14$33.54
Upside / Downside20.36%25.68%31.18%

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