Definitive Analysis
Definitive Analysis

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Ticker

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Sector

South Plains Financial, Inc. (SPFI)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$110.14 - $507.33$193.68
Multi-Stage$66.55 - $72.80$69.62
Blended Fair Value$131.65
Current Price$38.65
Upside240.62%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS53.36%0.00%0.540.510.470.320.150.061.760.460.000.00
YoY Growth--4.68%9.15%48.78%113.01%134.29%-96.41%281.57%0.00%0.00%0.00%
Dividend Yield--1.62%2.00%2.20%1.19%0.65%0.41%9.96%2.61%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)59.71
(-) Cash Dividends Paid (M)9.95
(=) Cash Retained (M)49.76
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11.947.464.48
Cash Retained (M)49.7649.7649.76
(-) Cash Required (M)-11.94-7.46-4.48
(=) Excess Retained (M)37.8242.3045.28
(/) Shares Outstanding (M)17.0317.0317.03
(=) Excess Retained per Share2.222.482.66
LTM Dividend per Share0.580.580.58
(+) Excess Retained per Share2.222.482.66
(=) Adjusted Dividend2.813.073.24
WACC / Discount Rate8.19%8.19%8.19%
Growth Rate5.50%6.50%7.50%
Fair Value$110.14$193.68$507.33
Upside / Downside184.98%401.12%1,212.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)59.7163.6067.7372.1376.8281.8184.27
Payout Ratio16.67%31.34%46.00%60.67%75.33%90.00%92.50%
Projected Dividends (M)9.9519.9331.1643.7657.8773.6377.95

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.19%8.19%8.19%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)18.2518.4218.59
Year 2 PV (M)26.1226.6227.12
Year 3 PV (M)33.5934.5635.54
Year 4 PV (M)40.6842.2443.85
Year 5 PV (M)47.3949.6852.06
PV of Terminal Value (M)967.131,013.841,062.34
Equity Value (M)1,133.161,185.361,239.51
Shares Outstanding (M)17.0317.0317.03
Fair Value$66.55$69.62$72.80
Upside / Downside72.19%80.13%88.35%

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