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CNB Financial Corporation (CCNE)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$52.23 - $139.44$80.03
Multi-Stage$36.14 - $39.46$37.77
Blended Fair Value$58.90
Current Price$24.20
Upside143.37%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.56%4.59%0.690.680.590.540.510.480.480.470.440.44
YoY Growth--1.48%17.02%8.72%5.18%6.01%1.18%1.42%5.74%0.33%-0.06%
Dividend Yield--3.12%3.41%3.05%2.04%2.08%2.56%1.87%1.62%1.86%2.52%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)47.55
(-) Cash Dividends Paid (M)16.66
(=) Cash Retained (M)30.88
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.515.943.57
Cash Retained (M)30.8830.8830.88
(-) Cash Required (M)-9.51-5.94-3.57
(=) Excess Retained (M)21.3724.9427.32
(/) Shares Outstanding (M)21.4621.4621.46
(=) Excess Retained per Share1.001.161.27
LTM Dividend per Share0.780.780.78
(+) Excess Retained per Share1.001.161.27
(=) Adjusted Dividend1.771.942.05
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$52.23$80.03$139.44
Upside / Downside115.84%230.69%476.20%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)47.5550.6453.9357.4361.1765.1467.10
Payout Ratio35.05%46.04%57.03%68.02%79.01%90.00%92.50%
Projected Dividends (M)16.6623.3130.7539.0748.3358.6362.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)21.1721.3721.57
Year 2 PV (M)25.3625.8526.33
Year 3 PV (M)29.2630.1030.95
Year 4 PV (M)32.8734.1435.44
Year 5 PV (M)36.2237.9639.78
PV of Terminal Value (M)630.56661.02692.64
Equity Value (M)775.44810.43846.72
Shares Outstanding (M)21.4621.4621.46
Fair Value$36.14$37.77$39.46
Upside / Downside49.32%56.06%63.04%

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