Definitive Analysis
Definitive Analysis

Financial Statements

Analysis Mode

Ticker

Industry

Sector

Cathay General Bancorp (CATY)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$101.01 - $265.84$154.08
Multi-Stage$69.86 - $76.29$73.02
Blended Fair Value$113.55
Current Price$48.01
Upside136.50%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.24%15.54%1.391.401.441.411.401.411.190.990.840.64
YoY Growth---0.68%-2.30%1.64%0.64%-0.45%18.82%19.37%17.91%30.90%96.00%
Dividend Yield--3.24%3.80%4.16%3.16%3.44%6.14%3.41%2.49%2.24%2.27%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)304.81
(-) Cash Dividends Paid (M)95.11
(=) Cash Retained (M)209.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)60.9638.1022.86
Cash Retained (M)209.70209.70209.70
(-) Cash Required (M)-60.96-38.10-22.86
(=) Excess Retained (M)148.74171.60186.84
(/) Shares Outstanding (M)70.3470.3470.34
(=) Excess Retained per Share2.112.442.66
LTM Dividend per Share1.351.351.35
(+) Excess Retained per Share2.112.442.66
(=) Adjusted Dividend3.473.794.01
WACC / Discount Rate9.12%9.12%9.12%
Growth Rate5.50%6.50%7.50%
Fair Value$101.01$154.08$265.84
Upside / Downside110.39%220.92%453.71%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)304.81324.62345.72368.19392.13417.61430.14
Payout Ratio31.20%42.96%54.72%66.48%78.24%90.00%92.50%
Projected Dividends (M)95.11139.46189.18244.78306.80375.85397.88

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.12%9.12%9.12%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)126.61127.81129.01
Year 2 PV (M)155.91158.88161.88
Year 3 PV (M)183.13188.39193.74
Year 4 PV (M)208.37216.38224.63
Year 5 PV (M)231.73242.93254.55
PV of Terminal Value (M)4,007.804,201.384,402.37
Equity Value (M)4,913.555,135.765,366.17
Shares Outstanding (M)70.3470.3470.34
Fair Value$69.86$73.02$76.29
Upside / Downside45.50%52.08%58.91%

High-Yield Dividend Screener

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