Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Hanmi Financial Corporation (HAFC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$91.44 - $480.60$183.02
Multi-Stage$51.93 - $56.76$54.30
Blended Fair Value$118.66
Current Price$24.69
Upside380.60%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.40%16.33%1.011.020.950.550.530.991.030.860.850.43
YoY Growth---0.51%6.63%73.40%3.47%-46.40%-3.70%19.80%0.58%100.74%90.96%
Dividend Yield--4.47%6.57%5.14%2.24%2.69%9.14%4.72%2.80%2.78%1.93%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)72.55
(-) Cash Dividends Paid (M)32.08
(=) Cash Retained (M)40.47
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.519.075.44
Cash Retained (M)40.4740.4740.47
(-) Cash Required (M)-14.51-9.07-5.44
(=) Excess Retained (M)25.9631.4035.02
(/) Shares Outstanding (M)30.0230.0230.02
(=) Excess Retained per Share0.861.051.17
LTM Dividend per Share1.071.071.07
(+) Excess Retained per Share0.861.051.17
(=) Adjusted Dividend1.932.112.24
WACC / Discount Rate7.73%7.73%7.73%
Growth Rate5.50%6.50%7.50%
Fair Value$91.44$183.02$480.60
Upside / Downside270.36%641.26%1,846.52%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)72.5577.2682.2887.6393.3399.39102.37
Payout Ratio44.22%53.38%62.53%71.69%80.84%90.00%92.50%
Projected Dividends (M)32.0841.2451.4562.8275.4589.4594.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.73%7.73%7.73%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)37.9238.2838.64
Year 2 PV (M)43.5144.3345.17
Year 3 PV (M)48.8450.2451.67
Year 4 PV (M)53.9456.0158.15
Year 5 PV (M)58.8161.6564.60
PV of Terminal Value (M)1,316.001,379.561,445.55
Equity Value (M)1,559.011,630.081,703.78
Shares Outstanding (M)30.0230.0230.02
Fair Value$51.93$54.30$56.76
Upside / Downside110.34%119.93%129.87%

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