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Brookline Bancorp, Inc. (BRKL)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$19.34 - $47.62$28.88
Multi-Stage$14.63 - $15.95$15.28
Blended Fair Value$22.08
Current Price$10.55
Upside109.29%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.48%7.25%0.540.540.450.420.410.390.350.300.280.28
YoY Growth--0.28%19.58%6.98%2.93%3.66%11.67%16.30%6.58%1.60%4.57%
Dividend Yield--4.93%5.52%4.26%2.65%2.71%3.48%2.39%1.86%1.81%2.53%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)78.80
(-) Cash Dividends Paid (M)48.11
(=) Cash Retained (M)30.69
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)15.769.855.91
Cash Retained (M)30.6930.6930.69
(-) Cash Required (M)-15.76-9.85-5.91
(=) Excess Retained (M)14.9320.8424.78
(/) Shares Outstanding (M)89.5089.5089.50
(=) Excess Retained per Share0.170.230.28
LTM Dividend per Share0.540.540.54
(+) Excess Retained per Share0.170.230.28
(=) Adjusted Dividend0.700.770.81
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.25%6.25%7.25%
Fair Value$19.34$28.88$47.62
Upside / Downside83.28%173.77%351.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)78.8083.7388.9694.51100.41106.69109.89
Payout Ratio61.06%66.84%72.63%78.42%84.21%90.00%92.50%
Projected Dividends (M)48.1155.9764.6174.1284.5696.02101.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.25%6.25%7.25%
Year 1 PV (M)50.8251.3151.79
Year 2 PV (M)53.2854.3055.33
Year 3 PV (M)55.5157.1158.73
Year 4 PV (M)57.5159.7362.01
Year 5 PV (M)59.3062.1865.16
PV of Terminal Value (M)1,032.581,082.571,134.49
Equity Value (M)1,309.011,367.191,427.51
Shares Outstanding (M)89.5089.5089.50
Fair Value$14.63$15.28$15.95
Upside / Downside38.64%44.80%51.19%

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