Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

S&T Bancorp, Inc. (STBA)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$131.85 - $495.43$221.66
Multi-Stage$83.60 - $91.36$87.41
Blended Fair Value$154.53
Current Price$37.59
Upside311.10%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.41%9.70%1.321.291.221.151.140.970.890.740.690.63
YoY Growth--2.55%5.87%5.93%0.86%17.64%8.17%20.90%6.66%9.38%21.20%
Dividend Yield--3.56%4.04%3.87%3.88%3.40%3.54%2.23%1.85%2.01%2.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)175.71
(-) Cash Dividends Paid (M)52.27
(=) Cash Retained (M)123.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)35.1421.9613.18
Cash Retained (M)123.45123.45123.45
(-) Cash Required (M)-35.14-21.96-13.18
(=) Excess Retained (M)88.30101.48110.27
(/) Shares Outstanding (M)38.6038.6038.60
(=) Excess Retained per Share2.292.632.86
LTM Dividend per Share1.351.351.35
(+) Excess Retained per Share2.292.632.86
(=) Adjusted Dividend3.643.984.21
WACC / Discount Rate8.41%8.41%8.41%
Growth Rate5.50%6.50%7.50%
Fair Value$131.85$221.66$495.43
Upside / Downside250.76%489.67%1,217.99%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)175.71187.13199.29212.25226.05240.74247.96
Payout Ratio29.75%41.80%53.85%65.90%77.95%90.00%92.50%
Projected Dividends (M)52.2778.21107.31139.87176.20216.66229.36

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.41%8.41%8.41%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)71.4772.1472.82
Year 2 PV (M)89.6091.3093.03
Year 3 PV (M)106.70109.77112.89
Year 4 PV (M)122.82127.55132.41
Year 5 PV (M)138.00144.67151.59
PV of Terminal Value (M)2,698.612,828.952,964.29
Equity Value (M)3,227.203,374.383,527.01
Shares Outstanding (M)38.6038.6038.60
Fair Value$83.60$87.41$91.36
Upside / Downside122.39%132.53%143.05%

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