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Kemper Corporation 5.875% Fixed (KMPB)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$41.10 - $65.49$52.18
Multi-Stage$52.63 - $57.64$55.09
Blended Fair Value$53.63
Current Price$51.55
Upside4.04%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.39%4.46%1.251.251.251.261.241.060.880.780.770.78
YoY Growth--0.00%0.50%-1.12%2.15%16.37%20.21%13.94%0.61%-1.01%-4.05%
Dividend Yield--1.88%2.06%2.28%2.23%1.55%1.43%1.14%1.36%1.93%2.63%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)248.70
(-) Cash Dividends Paid (M)80.70
(=) Cash Retained (M)168.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)49.7431.0918.65
Cash Retained (M)168.00168.00168.00
(-) Cash Required (M)-49.74-31.09-18.65
(=) Excess Retained (M)118.26136.91149.35
(/) Shares Outstanding (M)63.8463.8463.84
(=) Excess Retained per Share1.852.142.34
LTM Dividend per Share1.261.261.26
(+) Excess Retained per Share1.852.142.34
(=) Adjusted Dividend3.123.413.60
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.39%2.39%3.39%
Fair Value$41.10$52.18$65.49
Upside / Downside-20.28%1.22%27.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)248.70254.65260.73266.97273.35279.88288.28
Payout Ratio32.45%43.96%55.47%66.98%78.49%90.00%92.50%
Projected Dividends (M)80.70111.94144.63178.81214.55251.89266.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.39%2.39%3.39%
Year 1 PV (M)101.62102.62103.62
Year 2 PV (M)119.19121.55123.94
Year 3 PV (M)133.77137.77141.85
Year 4 PV (M)145.71151.55157.55
Year 5 PV (M)155.30163.11171.24
PV of Terminal Value (M)2,704.032,840.032,981.46
Equity Value (M)3,359.633,516.643,679.65
Shares Outstanding (M)63.8463.8463.84
Fair Value$52.63$55.09$57.64
Upside / Downside2.09%6.87%11.82%

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