Definitive Analysis
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Definitive Analysis

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Ticker

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Sector

OceanFirst Financial Corp. (OCFC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$34.93 - $102.73$55.08
Multi-Stage$24.23 - $26.43$25.31
Blended Fair Value$40.19
Current Price$17.57
Upside128.76%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.24%19.97%0.880.890.820.770.740.590.510.330.220.15
YoY Growth---0.77%7.92%6.74%3.71%25.34%15.82%53.29%52.87%45.13%5.48%
Dividend Yield--5.18%5.61%4.45%3.83%3.10%3.73%2.12%1.25%0.77%0.85%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)79.79
(-) Cash Dividends Paid (M)49.45
(=) Cash Retained (M)30.34
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)15.969.975.98
Cash Retained (M)30.3430.3430.34
(-) Cash Required (M)-15.96-9.97-5.98
(=) Excess Retained (M)14.3820.3724.36
(/) Shares Outstanding (M)57.7757.7757.77
(=) Excess Retained per Share0.250.350.42
LTM Dividend per Share0.860.860.86
(+) Excess Retained per Share0.250.350.42
(=) Adjusted Dividend1.101.211.28
WACC / Discount Rate8.84%8.84%8.84%
Growth Rate5.50%6.50%7.50%
Fair Value$34.93$55.08$102.73
Upside / Downside98.83%213.47%484.69%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)79.7984.9890.5096.39102.65109.32112.60
Payout Ratio61.98%67.58%73.19%78.79%84.40%90.00%92.50%
Projected Dividends (M)49.4557.4366.2475.9486.6398.39104.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.84%8.84%8.84%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)52.2752.7753.26
Year 2 PV (M)54.8755.9256.97
Year 3 PV (M)57.2658.9160.58
Year 4 PV (M)59.4661.7464.09
Year 5 PV (M)61.4664.4367.51
PV of Terminal Value (M)1,114.681,168.521,224.42
Equity Value (M)1,400.001,462.281,526.84
Shares Outstanding (M)57.7757.7757.77
Fair Value$24.23$25.31$26.43
Upside / Downside37.92%44.06%50.42%

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