Definitive Analysis
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Definitive Analysis

Financial Statements

Periods / Units / Analysis

Ticker

Industry

Sector

First Trust New Opportunities MLP & Energy Fund (FPL)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$13.24 - $19.57$16.27
Multi-Stage$24.77 - $27.20$25.96
Blended Fair Value$21.12
Current Price$6.68
Upside216.10%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS0.00%0.00%0.450.460.470.730.980.001.301.260.000.00
YoY Growth---3.44%-2.60%-35.27%-24.98%0.00%-100.00%2.73%0.00%0.00%0.00%
Dividend Yield--6.67%7.59%8.10%20.00%11.26%0.00%10.90%9.87%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)39.68
(-) Cash Dividends Paid (M)21.51
(=) Cash Retained (M)18.17
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.944.962.98
Cash Retained (M)18.1718.1718.17
(-) Cash Required (M)-7.94-4.96-2.98
(=) Excess Retained (M)10.2413.2115.20
(/) Shares Outstanding (M)23.7123.7123.71
(=) Excess Retained per Share0.430.560.64
LTM Dividend per Share0.910.910.91
(+) Excess Retained per Share0.430.560.64
(=) Adjusted Dividend1.341.461.55
WACC / Discount Rate7.91%7.91%7.91%
Growth Rate-2.00%-1.00%0.00%
Fair Value$13.24$16.27$19.57
Upside / Downside98.22%143.60%193.01%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)39.6839.2838.8938.5038.1137.7338.86
Payout Ratio54.20%61.36%68.52%75.68%82.84%90.00%92.50%
Projected Dividends (M)21.5124.1026.6529.1431.5733.9635.95

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.91%7.91%7.91%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)22.1122.3422.56
Year 2 PV (M)22.4222.8823.35
Year 3 PV (M)22.4923.1923.90
Year 4 PV (M)22.3623.2924.24
Year 5 PV (M)22.0623.2124.41
PV of Terminal Value (M)475.81500.59526.38
Equity Value (M)587.26615.49644.84
Shares Outstanding (M)23.7123.7123.71
Fair Value$24.77$25.96$27.20
Upside / Downside270.79%288.61%307.14%

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