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Magyar Bancorp, Inc. (MGYR)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$27.24 - $72.25$41.65
Multi-Stage$18.61 - $20.33$19.45
Blended Fair Value$30.55
Current Price$17.27
Upside76.90%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.270.210.230.000.000.000.000.000.000.00
YoY Growth--27.68%-7.85%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.56%1.45%2.04%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7.24
(-) Cash Dividends Paid (M)1.64
(=) Cash Retained (M)5.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.450.900.54
Cash Retained (M)5.605.605.60
(-) Cash Required (M)-1.45-0.90-0.54
(=) Excess Retained (M)4.154.695.05
(/) Shares Outstanding (M)6.236.236.23
(=) Excess Retained per Share0.670.750.81
LTM Dividend per Share0.260.260.26
(+) Excess Retained per Share0.670.750.81
(=) Adjusted Dividend0.931.021.07
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$27.24$41.65$72.25
Upside / Downside57.71%141.15%318.36%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7.247.718.218.749.319.9110.21
Payout Ratio22.66%36.13%49.60%63.07%76.53%90.00%92.50%
Projected Dividends (M)1.642.784.075.517.128.929.45

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2.532.552.58
Year 2 PV (M)3.363.423.48
Year 3 PV (M)4.134.254.37
Year 4 PV (M)4.845.035.22
Year 5 PV (M)5.515.776.05
PV of Terminal Value (M)95.60100.22105.01
Equity Value (M)115.96121.24126.71
Shares Outstanding (M)6.236.236.23
Fair Value$18.61$19.45$20.33
Upside / Downside7.74%12.65%17.73%

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