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Clarkston Partners Fund Institutional Class (CISMX)

Company Dividend Discount ModelIndustry: Sector:

Valuation Snapshot

Stable Growth$3.92 - $5.70$4.79
Multi-Stage$6.22 - $6.83$6.52
Blended Fair Value$5.65
Current Price$14.39
Upside-60.73%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS0.00%6.14%0.240.210.250.280.290.000.350.130.080.03
YoY Growth--10.31%-13.77%-12.62%-2.55%0.00%-100.00%173.24%49.05%166.91%-75.48%
Dividend Yield--1.64%1.57%1.50%1.68%2.82%0.00%2.74%1.08%0.82%0.32%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)27.54
(-) Cash Dividends Paid (M)9.01
(=) Cash Retained (M)18.52
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.513.442.07
Cash Retained (M)18.5218.5218.52
(-) Cash Required (M)-5.51-3.44-2.07
(=) Excess Retained (M)13.0115.0816.46
(/) Shares Outstanding (M)52.1552.1552.15
(=) Excess Retained per Share0.250.290.32
LTM Dividend per Share0.170.170.17
(+) Excess Retained per Share0.250.290.32
(=) Adjusted Dividend0.420.460.49
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.51%-0.51%0.49%
Fair Value$3.92$4.79$5.70
Upside / Downside-72.74%-66.74%-60.36%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)27.5427.4027.2627.1226.9826.8527.65
Payout Ratio32.74%44.19%55.64%67.09%78.55%90.00%92.50%
Projected Dividends (M)9.0112.1115.1718.2021.1924.1625.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.51%-0.51%0.49%
Year 1 PV (M)10.9811.1011.21
Year 2 PV (M)12.4912.7413.00
Year 3 PV (M)13.5914.0114.44
Year 4 PV (M)14.3714.9615.57
Year 5 PV (M)14.8615.6316.43
PV of Terminal Value (M)258.01271.38285.29
Equity Value (M)324.31339.82355.94
Shares Outstanding (M)52.1552.1552.15
Fair Value$6.22$6.52$6.83
Upside / Downside-56.79%-54.72%-52.57%

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