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Sabine Royalty Trust (SBR)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$54.79 - $86.07$69.15
Multi-Stage$71.45 - $78.32$74.82
Blended Fair Value$71.98
Current Price$79.46
Upside-9.41%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.000.000.002.371.933.11
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%-100.00%22.46%-37.72%-24.22%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%0.00%0.00%5.39%5.43%10.49%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)79.26
(-) Cash Dividends Paid (M)18.24
(=) Cash Retained (M)61.02
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)15.859.915.94
Cash Retained (M)61.0261.0261.02
(-) Cash Required (M)-15.85-9.91-5.94
(=) Excess Retained (M)45.1751.1155.07
(/) Shares Outstanding (M)14.5814.5814.58
(=) Excess Retained per Share3.103.513.78
LTM Dividend per Share1.251.251.25
(+) Excess Retained per Share3.103.513.78
(=) Adjusted Dividend4.354.765.03
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.06%2.06%3.06%
Fair Value$54.79$69.15$86.07
Upside / Downside-31.04%-12.98%8.32%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)79.2680.8982.5684.2685.9987.7690.39
Payout Ratio23.02%36.41%49.81%63.21%76.60%90.00%92.50%
Projected Dividends (M)18.2429.4541.1253.2665.8778.9983.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.06%2.06%3.06%
Year 1 PV (M)26.7427.0027.27
Year 2 PV (M)33.8934.5635.24
Year 3 PV (M)39.8441.0342.25
Year 4 PV (M)44.7346.5348.38
Year 5 PV (M)48.6951.1553.70
PV of Terminal Value (M)847.76890.54935.03
Equity Value (M)1,041.641,090.811,141.87
Shares Outstanding (M)14.5814.5814.58
Fair Value$71.45$74.82$78.32
Upside / Downside-10.08%-5.84%-1.43%

High-Yield Dividend Screener

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