Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

FNCB Bancorp, Inc. (FNCB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$118.29 - $139.36$130.60
Multi-Stage$32.00 - $35.05$33.50
Blended Fair Value$82.05
Current Price$5.95
Upside1,278.99%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS20.00%0.00%0.360.330.270.220.200.140.110.080.000.00
YoY Growth--9.05%20.14%22.04%10.35%41.06%31.30%45.84%0.00%0.00%0.00%
Dividend Yield--6.05%5.32%2.90%2.98%2.95%1.86%1.19%1.18%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)13.85
(-) Cash Dividends Paid (M)7.12
(=) Cash Retained (M)6.73
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.771.731.04
Cash Retained (M)6.736.736.73
(-) Cash Required (M)-2.77-1.73-1.04
(=) Excess Retained (M)3.965.005.69
(/) Shares Outstanding (M)19.7719.7719.77
(=) Excess Retained per Share0.200.250.29
LTM Dividend per Share0.360.360.36
(+) Excess Retained per Share0.200.250.29
(=) Adjusted Dividend0.560.610.65
WACC / Discount Rate5.30%5.30%5.30%
Growth Rate5.50%6.50%7.50%
Fair Value$118.29$130.60$139.36
Upside / Downside1,888.02%2,095.01%2,242.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)13.8514.7515.7116.7317.8218.9819.55
Payout Ratio51.41%59.13%66.84%74.56%82.28%90.00%92.50%
Projected Dividends (M)7.128.7210.5012.4814.6617.0818.08

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.30%5.30%5.30%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)8.218.288.36
Year 2 PV (M)9.309.479.65
Year 3 PV (M)10.3910.6910.99
Year 4 PV (M)11.4911.9312.38
Year 5 PV (M)12.5913.2013.83
PV of Terminal Value (M)580.54608.58637.69
Equity Value (M)632.50662.15692.91
Shares Outstanding (M)19.7719.7719.77
Fair Value$32.00$33.50$35.05
Upside / Downside437.77%462.98%489.13%

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