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Hibbett, Inc. (HIBB)

Company Dividend Discount ModelIndustry: Apparel - RetailSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$56.38 - $81.14$68.46
Multi-Stage$88.76 - $97.64$93.11
Blended Fair Value$80.78
Current Price$86.59
Upside-6.70%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)99.78
(-) Cash Dividends Paid (M)8.98
(=) Cash Retained (M)90.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)19.9612.477.48
Cash Retained (M)90.8090.8090.80
(-) Cash Required (M)-19.96-12.47-7.48
(=) Excess Retained (M)70.8578.3383.32
(/) Shares Outstanding (M)12.5012.5012.50
(=) Excess Retained per Share5.676.266.66
LTM Dividend per Share0.720.720.72
(+) Excess Retained per Share5.676.266.66
(=) Adjusted Dividend6.386.987.38
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$56.38$68.46$81.14
Upside / Downside-34.89%-20.94%-6.30%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)99.7898.7997.8096.8295.8594.8997.74
Payout Ratio9.00%25.20%41.40%57.60%73.80%90.00%92.50%
Projected Dividends (M)8.9824.8940.4955.7770.7485.4090.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)22.5922.8223.05
Year 2 PV (M)33.3334.0234.71
Year 3 PV (M)41.6642.9544.26
Year 4 PV (M)47.9549.9351.98
Year 5 PV (M)52.5255.2658.11
PV of Terminal Value (M)911.79959.271,008.70
Equity Value (M)1,109.841,164.241,220.81
Shares Outstanding (M)12.5012.5012.50
Fair Value$88.76$93.11$97.64
Upside / Downside2.51%7.53%12.76%

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