Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Tortoise Essential Energy Fund (TPZ)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$31.19 - $46.55$38.50
Multi-Stage$61.60 - $67.63$64.56
Blended Fair Value$51.53
Current Price$15.45
Upside233.50%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017
DPS-5.69%0.00%1.291.260.701.211.721.721.720.000.000.00
YoY Growth--2.35%79.38%-41.93%-30.01%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--9.48%9.23%5.43%12.08%11.08%10.05%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)22.97
(-) Cash Dividends Paid (M)15.57
(=) Cash Retained (M)7.41
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.592.871.72
Cash Retained (M)7.417.417.41
(-) Cash Required (M)-4.59-2.87-1.72
(=) Excess Retained (M)2.814.535.68
(/) Shares Outstanding (M)6.056.056.05
(=) Excess Retained per Share0.470.750.94
LTM Dividend per Share2.582.582.58
(+) Excess Retained per Share0.470.750.94
(=) Adjusted Dividend3.043.333.52
WACC / Discount Rate7.55%7.55%7.55%
Growth Rate-2.00%-1.00%0.00%
Fair Value$31.19$38.50$46.55
Upside / Downside101.90%149.16%201.29%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)22.9722.7422.5222.2922.0721.8522.50
Payout Ratio67.76%72.21%76.66%81.10%85.55%90.00%92.50%
Projected Dividends (M)15.5716.4217.2618.0818.8819.6620.82

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.55%7.55%7.55%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)15.1215.2715.42
Year 2 PV (M)14.6214.9215.23
Year 3 PV (M)14.1014.5314.98
Year 4 PV (M)13.5514.1114.69
Year 5 PV (M)12.9913.6614.37
PV of Terminal Value (M)302.03317.76334.14
Equity Value (M)372.41390.26408.82
Shares Outstanding (M)6.056.056.05
Fair Value$61.60$64.56$67.63
Upside / Downside298.73%317.85%337.72%

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