Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

PIMCO Corporate & Income Strategy Fund (PCN)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$20.89 - $31.47$25.89
Multi-Stage$43.03 - $47.27$45.11
Blended Fair Value$35.50
Current Price$12.69
Upside179.73%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.79%0.00%1.211.031.000.000.810.830.850.801.040.00
YoY Growth--18.27%2.66%0.00%-100.00%-2.80%-1.88%6.55%-23.16%0.00%0.00%
Dividend Yield--9.57%7.75%7.63%0.00%4.29%5.46%4.71%4.41%5.80%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)150.64
(-) Cash Dividends Paid (M)103.86
(=) Cash Retained (M)46.77
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)30.1318.8311.30
Cash Retained (M)46.7746.7746.77
(-) Cash Required (M)-30.13-18.83-11.30
(=) Excess Retained (M)16.6427.9435.47
(/) Shares Outstanding (M)61.3561.3561.35
(=) Excess Retained per Share0.270.460.58
LTM Dividend per Share1.691.691.69
(+) Excess Retained per Share0.270.460.58
(=) Adjusted Dividend1.962.152.27
WACC / Discount Rate7.22%7.22%7.22%
Growth Rate-2.00%-1.00%0.00%
Fair Value$20.89$25.89$31.47
Upside / Downside64.59%103.99%148.01%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)150.64149.13147.64146.16144.70143.25147.55
Payout Ratio68.95%73.16%77.37%81.58%85.79%90.00%92.50%
Projected Dividends (M)103.86109.10114.23119.24124.14128.93136.48

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.22%7.22%7.22%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)100.73101.76102.79
Year 2 PV (M)97.3799.37101.39
Year 3 PV (M)93.8496.7499.71
Year 4 PV (M)90.2093.9497.79
Year 5 PV (M)86.4991.0095.69
PV of Terminal Value (M)2,171.362,284.432,402.16
Equity Value (M)2,640.002,767.242,899.52
Shares Outstanding (M)61.3561.3561.35
Fair Value$43.03$45.11$47.27
Upside / Downside239.12%255.47%272.46%

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