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ClearBridge Energy Midstream Opportunity Fund Inc (EMO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$155.04 - $223.22$188.30
Multi-Stage$250.80 - $275.50$262.91
Blended Fair Value$225.61
Current Price$46.33
Upside386.96%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-12.72%-2.52%2.252.041.671.312.044.443.562.682.593.01
YoY Growth--10.29%21.70%27.33%-35.53%-54.02%24.73%32.47%3.79%-14.05%3.76%
Dividend Yield--4.45%5.91%5.50%6.07%16.06%11.64%7.71%5.13%4.03%4.09%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)325.93
(-) Cash Dividends Paid (M)87.16
(=) Cash Retained (M)238.77
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)65.1940.7424.44
Cash Retained (M)238.77238.77238.77
(-) Cash Required (M)-65.19-40.74-24.44
(=) Excess Retained (M)173.59198.03214.33
(/) Shares Outstanding (M)14.8714.8714.87
(=) Excess Retained per Share11.6713.3114.41
LTM Dividend per Share5.865.865.86
(+) Excess Retained per Share11.6713.3114.41
(=) Adjusted Dividend17.5319.1720.27
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$155.04$188.30$223.22
Upside / Downside234.65%306.44%381.80%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)325.93322.67319.44316.25313.08309.95319.25
Payout Ratio26.74%39.39%52.04%64.70%77.35%90.00%92.50%
Projected Dividends (M)87.16127.11166.25204.60242.16278.96295.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)115.35116.53117.70
Year 2 PV (M)136.92139.73142.56
Year 3 PV (M)152.91157.64162.47
Year 4 PV (M)164.25171.05178.07
Year 5 PV (M)171.70180.64189.95
PV of Terminal Value (M)2,989.513,145.183,307.27
Equity Value (M)3,730.633,910.764,098.02
Shares Outstanding (M)14.8714.8714.87
Fair Value$250.80$262.91$275.50
Upside / Downside441.34%467.48%494.65%

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