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Hingham Institution for Savings (HIFS)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$374.86 - $784.14$529.54
Multi-Stage$310.91 - $340.19$325.28
Blended Fair Value$427.41
Current Price$263.78
Upside62.03%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.73%6.52%2.493.082.992.622.241.981.681.571.472.07
YoY Growth---19.02%2.87%13.91%17.08%13.40%17.94%6.83%6.67%-28.93%56.24%
Dividend Yield--1.05%1.77%1.28%0.76%0.79%1.36%0.97%0.77%0.83%1.74%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)45.21
(-) Cash Dividends Paid (M)5.50
(=) Cash Retained (M)39.71
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.045.653.39
Cash Retained (M)39.7139.7139.71
(-) Cash Required (M)-9.04-5.65-3.39
(=) Excess Retained (M)30.6734.0636.32
(/) Shares Outstanding (M)2.202.202.20
(=) Excess Retained per Share13.9315.4716.50
LTM Dividend per Share2.502.502.50
(+) Excess Retained per Share13.9315.4716.50
(=) Adjusted Dividend16.4317.9718.99
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.52%5.52%6.52%
Fair Value$374.86$529.54$784.14
Upside / Downside42.11%100.75%197.27%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)45.2147.7050.3353.1156.0459.1460.91
Payout Ratio12.15%27.72%43.29%58.86%74.43%90.00%92.50%
Projected Dividends (M)5.5013.2321.7931.2641.7153.2256.34

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.52%5.52%6.52%
Year 1 PV (M)12.0112.1212.24
Year 2 PV (M)17.9618.3118.66
Year 3 PV (M)23.4024.0824.77
Year 4 PV (M)28.3429.4430.58
Year 5 PV (M)32.8334.4436.10
PV of Terminal Value (M)570.01597.80626.67
Equity Value (M)684.55716.19749.01
Shares Outstanding (M)2.202.202.20
Fair Value$310.91$325.28$340.19
Upside / Downside17.87%23.32%28.97%

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