Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Western Asset Managed Municipals Fund Class C (SMMCX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$14.22 - $22.56$18.02
Multi-Stage$37.44 - $41.22$39.29
Blended Fair Value$28.66
Current Price$14.42
Upside98.73%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020
DPS6.43%0.00%0.690.480.380.410.450.500.000.000.000.00
YoY Growth--44.65%25.02%-7.23%-8.22%-11.30%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.78%3.22%2.57%2.68%2.66%3.19%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)73.38
(-) Cash Dividends Paid (M)52.58
(=) Cash Retained (M)20.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.689.175.50
Cash Retained (M)20.8020.8020.80
(-) Cash Required (M)-14.68-9.17-5.50
(=) Excess Retained (M)6.1311.6315.30
(/) Shares Outstanding (M)51.8551.8551.85
(=) Excess Retained per Share0.120.220.30
LTM Dividend per Share1.011.011.01
(+) Excess Retained per Share0.120.220.30
(=) Adjusted Dividend1.131.241.31
WACC / Discount Rate5.80%5.80%5.80%
Growth Rate-2.00%-1.00%0.00%
Fair Value$14.22$18.02$22.56
Upside / Downside-1.39%24.97%56.45%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)73.3872.6571.9271.2070.4969.7871.88
Payout Ratio71.65%75.32%78.99%82.66%86.33%90.00%92.50%
Projected Dividends (M)52.5854.7256.8158.8560.8562.8066.49

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.80%5.80%5.80%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)51.1951.7152.24
Year 2 PV (M)49.7350.7551.78
Year 3 PV (M)48.2049.6951.21
Year 4 PV (M)46.6348.5650.55
Year 5 PV (M)45.0347.3749.81
PV of Terminal Value (M)1,700.781,789.341,881.56
Equity Value (M)1,941.552,037.432,137.15
Shares Outstanding (M)51.8551.8551.85
Fair Value$37.44$39.29$41.22
Upside / Downside159.67%172.49%185.83%

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