NasdaqGS:IBTX

Stock Analysis Report

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

Fundamentals

Flawless balance sheet and good value.


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


Market Performance


7 Day Return

1.8%

IBTX

2.9%

US Banks

0.07%

US Market


1 Year Return

-1.2%

IBTX

8.6%

US Banks

8.9%

US Market

Return vs Industry: IBTX underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: IBTX underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

IBTXIndustryMarket
7 Day1.8%2.9%0.07%
30 Day-1.1%3.4%-0.3%
90 Day-6.8%2.1%-1.6%
1 Year0.4%-1.2%11.8%8.6%11.3%8.9%
3 Year12.6%9.2%54.8%44.1%46.3%36.8%
5 Year29.3%23.5%70.2%51.6%62.1%44.3%

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?

28.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IBTX ($52.48) is trading below our estimate of fair value ($73.22)

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 good value based on its PE Ratio (12.4x) compared to the Banks industry average (12.6x).

PE vs Market: IBTX is good value based on its PE Ratio (12.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: IBTX is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: IBTX is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


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?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBTX's forecast earnings growth (9.2% per year) is above the savings rate (2.7%).

Earnings vs Market: IBTX's earnings (9.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: IBTX's revenue (5.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: IBTX's revenue (5.1% 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 (9.2%).


Next Steps

Past Performance

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

36.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IBTX's earnings have grown significantly by 36.7% per year over the past 5 years.

Accelerating Growth: IBTX's earnings growth over the past year (54.7%) exceeds its 5-year average (36.7% per year).

Earnings vs Industry: IBTX earnings growth over the past year (54.7%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: IBTX's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: IBTX has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate IBTX's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: IBTX has a low level of unsold assets or inventory.

Debt Coverage by Assets: IBTX's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: IBTX's level of assets compared to its equity is low.

Allowance for Bad Loans: IBTX has a sufficient allowance for bad loans.

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

Loan Level: IBTX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IBTX's loans are broadly funded by customer deposits.

Level of Bad Loans: IBTX has an appropriate level of bad loans (0.15%)


Next Steps

Dividend

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

1.91%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IBTX's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: IBTX's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.4%), 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

What is the CEO of Independent Bank Group's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

David Brooks (60yo)

17.8yrs

Tenure

US$2,069,389

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD2.07M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

5.0yrs

Average Tenure

54yo

Average Age

Experienced Management: IBTX's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: IBTX's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$14,65213 Jun 19
Alicia Harrison
EntityIndividual
Shares275
Max PriceUS$53.28
SellUS$7,141,50007 Jun 19
SCW Capital Management, LP
EntityCompany
Shares135,000
Max PriceUS$52.90
SellUS$300,97604 May 19
Paul Taylor
EntityIndividual
Shares5,300
Max PriceUS$56.79
BuyUS$100,06126 Apr 19
Brian Hobart
EntityIndividual
Role
Senior Key Executive
Vice Chairman & Chief Lending Officer
Shares1,790
Max PriceUS$55.90
SellUS$286,10022 Feb 19
Paul Taylor
EntityIndividual
Shares5,000
Max PriceUS$57.22
SellUS$669,85005 Feb 19
Paul Taylor
EntityIndividual
Shares12,667
Max PriceUS$52.88
BuyUS$524,85022 Jan 19
Donald Poarch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$55.92
BuyUS$99,84117 Dec 18
Brian Hobart
EntityIndividual
Role
Senior Key Executive
Vice Chairman & Chief Lending Officer
Shares2,020
Max PriceUS$49.43
BuyUS$99,73713 Dec 18
Daniel Brooks
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Risk Officer
Shares2,000
Max PriceUS$50.21
BuyUS$99,49413 Dec 18
Brian Hobart
EntityIndividual
Role
Senior Key Executive
Vice Chairman & Chief Lending Officer
Shares1,970
Max PriceUS$50.50
BuyUS$25,78213 Dec 18
Craig Holmes
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$51.56
BuyUS$99,73604 Dec 18
Brian Hobart
EntityIndividual
Role
Senior Key Executive
Vice Chairman & Chief Lending Officer
Shares1,781
Max PriceUS$56.00
BuyUS$49,74329 Oct 18
Craig Holmes
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares900
Max PriceUS$55.27
BuyUS$59,87325 Oct 18
Fair Title, Inc.
EntityCompany
Shares1,100
Max PriceUS$54.43
BuyUS$547,89825 Oct 18
Douglas Cifu
EntityIndividual
Shares10,000
Max PriceUS$54.79
BuyUS$55,70725 Oct 18
Daniel Brooks
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Risk Officer
Shares1,000
Max PriceUS$55.71
BuyUS$200,50325 Oct 18
Brian Hobart
EntityIndividual
Role
Senior Key Executive
Vice Chairman & Chief Lending Officer
Shares3,700
Max PriceUS$54.19
BuyUS$242,49125 Oct 18
John Jennings
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,500
Max PriceUS$53.89

Ownership Breakdown


Management Team

  • Michelle Hickox (51yo)

    Executive VP & CFO

    • Tenure: 7.4yrs
    • Compensation: US$683.73k
  • Jim White (54yo)

    Executive VP & COO

    • Tenure: 3.5yrs
    • Compensation: US$643.63k
  • David Brooks (60yo)

    Chairman

    • Tenure: 17.8yrs
    • Compensation: US$2.07m
  • Dan Brooks (59yo)

    Vice Chairman & Chief Risk Officer

    • Tenure: 10.8yrs
    • Compensation: US$916.58k
  • Brian Hobart (53yo)

    Vice Chairman & Chief Lending Officer

    • Tenure: 10.8yrs
    • Compensation: US$860.72k
  • Leslie Beseda

    Executive VP & Chief Accounting Officer

    • Tenure: 0yrs
  • James Tippit (48yo)

    Executive VP & Head of Corporate Responsibility

    • Tenure: 1.8yrs
  • Mark Haynie (63yo)

    Executive VP & General Counsel

    • Tenure: 1.6yrs
  • Peggy Smolen

    Senior Vice President of Marketing & Communications

    • Tenure: 0yrs
  • Kenneth Whitelam

    Senior Vice President of Commercial Lending

    • Tenure: 1.5yrs

Board Members

  • Mark Gormley (58yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$98.48k
  • Craig Holmes (61yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$113.48k
  • Tom Nichols (72yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$98.48k
  • John Jennings (48yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$98.48k
  • David Brooks (60yo)

    Chairman

    • Tenure: 17.8yrs
    • Compensation: US$2.07m
  • Dan Brooks (59yo)

    Vice Chairman & Chief Risk Officer

    • Tenure: 10.8yrs
    • Compensation: US$916.58k
  • Will Fair (57yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$108.48k
  • G. Smith (50yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$103.48k
  • Michael Viola (32yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$98.48k
  • Donald Poarch (67yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$98.48k

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$2.254b
  • Shares outstanding: 42.95m
  • Website: https://www.independent-bank.com

Number of Employees


Location

  • Independent Bank Group, Inc.
  • 1600 Redbud Boulevard
  • Suite 100
  • McKinney
  • Texas
  • 75069
  • 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 Analysis2019/10/23 00:17
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.