NasdaqGS:IBTX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Independent Bank Group

Executive Summary

Independent Bank Group, Inc. operates as the bank holding company for Independent Bank that provides various commercial banking products and services to businesses, professionals, and individuals in the United States.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Independent Bank Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IBTX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

IBTX

3.1%

US Banks

0.5%

US Market


1 Year Return

-2.7%

IBTX

-15.2%

US Banks

18.7%

US Market

Return vs Industry: IBTX exceeded the US Banks industry which returned -13.5% over the past year.

Return vs Market: IBTX underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

IBTXIndustryMarket
7 Day4.1%3.1%0.5%
30 Day22.6%5.7%4.9%
90 Day76.7%20.1%19.8%
1 Year-0.4%-2.7%-12.2%-15.2%21.2%18.7%
3 Year-10.2%-14.3%-7.2%-14.8%46.2%36.8%
5 Year17.9%10.7%20.9%6.0%85.3%65.1%

Price Volatility Vs. Market

How volatile is Independent Bank Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Independent Bank Group undervalued compared to its fair value and its price relative to the market?

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IBTX ($47.83) is trading below our estimate of fair value ($57.86)

Significantly Below Fair Value: IBTX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IBTX is poor value based on its PE Ratio (10.9x) compared to the US Banks industry average (10.1x).

PE vs Market: IBTX is good value based on its PE Ratio (10.9x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: IBTX is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: IBTX's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is Independent Bank Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBTX's forecast earnings growth (2.2% per year) is below the savings rate (2.2%).

Earnings vs Market: IBTX's earnings (2.2% per year) are forecast to grow slower than the US market (24.1% per year).

High Growth Earnings: IBTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: IBTX's revenue (0.7% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: IBTX's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IBTX's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Independent Bank Group performed over the past 5 years?

36.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBTX has high quality earnings.

Growing Profit Margin: IBTX's current net profit margins (34.2%) are higher than last year (33.5%).


Past Earnings Growth Analysis

Earnings Trend: IBTX's earnings have grown significantly by 36.2% per year over the past 5 years.

Accelerating Growth: IBTX's earnings growth over the past year (20.5%) is below its 5-year average (36.2% per year).

Earnings vs Industry: IBTX earnings growth over the past year (20.5%) exceeded the Banks industry -2.8%.


Return on Equity

High ROE: IBTX's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Independent Bank Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: IBTX's Assets to Equity ratio (7x) is low.

Allowance for Bad Loans: IBTX has a sufficient allowance for bad loans (301%).

Low Risk Liabilities: 91% of IBTX's liabilities are made up of primarily low risk sources of funding.

Loan Level: IBTX has an appropriate level of Loans to Assets ratio (74%).

Low Risk Deposits: IBTX's Loans to Deposits ratio (94%) is appropriate.

Level of Bad Loans: IBTX has an appropriate level of bad loans (0.2%).


Next Steps

Dividend

What is Independent Bank Group current dividend yield, its reliability and sustainability?

2.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IBTX's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: IBTX's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (4.29%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IBTX has been paying a dividend for less than 10 years.

Growing Dividend: IBTX's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.8%), IBTX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IBTX's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

David Brooks (61 yo)

18.58yrs

Tenure

US$2,343,385

Compensation

Mr. David R. Brooks has been the Chairman of the Board of Independent Bank Group, Inc. since 2002, its President since October 3, 2016, and its Chief Executive Officer since 2002. He is the Chairman and Ch ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.34M) is below average for companies of similar size in the US market ($USD4.53M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Brooks
Chairman18.58yrsUS$2.34m2.2%
$ 45.7m
Daniel Brooks
Vice Chairman & Chief Risk Officer11.58yrsUS$1.05m0.31%
$ 6.5m
Michelle Hickox
Executive VP & CFO8.25yrsUS$816.35k0.094%
$ 2.0m
Mark Haynie
Executive VP & General Counsel2.42yrsUS$851.63k0.074%
$ 1.5m
James Tippit
Executive Vice President of Corporate Responsibility2.58yrsUS$1.01m0.035%
$ 721.2k
James White
Executive VP & COO4.33yrsUS$643.63k0.044%
$ 918.9k
Leslie Beseda
Executive VP & Chief Accounting Officerno datano datano data
Peggy Smolen
Senior Vice President of Marketing & Communicationsno datano datano data
Paul Langdale
Senior VP & Director of Corporate Developmentno datano datano data
Kenneth Whitelam
Senior Vice President of Commercial Lending2.33yrsno datano data
Charles Cartwright
Senior Vice President SBA Business Development Officer0.92yrno datano data
Michael Hobbs
Executive VP & Chief Banking Officerno datano data0.089%
$ 1.9m

3.5yrs

Average Tenure

57yo

Average Age

Experienced Management: IBTX's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Brooks
Chairman18.58yrsUS$2.34m2.2%
$ 45.7m
Daniel Brooks
Vice Chairman & Chief Risk Officer11.58yrsUS$1.05m0.31%
$ 6.5m
Craig Holmes
Independent Director7.5yrsUS$180.38k0.040%
$ 825.7k
John Jennings
Independent Director6.33yrsUS$165.38k0.12%
$ 2.5m
William Fair
Independent Director11.58yrsUS$175.38k0.52%
$ 10.8m
G. Smith
Lead Independent Director1.08yrsUS$170.38k0.22%
$ 4.7m
Michael Viola
Independent Director7.5yrsUS$165.38k0.060%
$ 1.2m
Donald Poarch
Independent Director6.33yrsUS$165.38k0.33%
$ 6.8m
Alicia Harrison
Independent Director1.25yrsUS$110.06k0.0033%
$ 67.9k

7.5yrs

Average Tenure

60yo

Average Age

Experienced Board: IBTX's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Independent Bank Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Independent Bank Group, Inc.
  • Ticker: IBTX
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.081b
  • Shares outstanding: 43.24m
  • Website: https://www.independent-bank.com

Number of Employees


Location

  • Independent Bank Group, Inc.
  • 7777 Henneman Way
  • McKinney
  • Texas
  • 75070-1711
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IBTXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2013
I3BDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2013

Biography

Independent Bank Group, Inc. operates as the bank holding company for Independent Bank that provides various commercial banking products and services to businesses, professionals, and individuals in the Un ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/13 23:50
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.