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.

Rewards

Trading at 54.2% below its fair value

Earnings are forecast to grow 52.81% per year

Earnings grew by 50.3% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with flawless balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

IBTX

-1.0%

US Banks

0.5%

US Market


1 Year Return

-2.6%

IBTX

10.6%

US Banks

20.3%

US Market

Return vs Industry: IBTX underperformed the US Banks industry which returned 10.6% over the past year.

Return vs Market: IBTX underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

IBTXIndustryMarket
7 Day0.6%-1.0%0.5%
30 Day4.7%-1.2%2.0%
90 Day-2.0%0.4%9.4%
1 Year-0.8%-2.6%13.8%10.6%22.8%20.3%
3 Year-10.1%-13.3%23.5%14.6%50.1%40.4%
5 Year62.2%54.0%74.0%54.2%73.1%54.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IBTX ($55.55) is trading below our estimate of fair value ($121.3)

Significantly Below Fair Value: IBTX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IBTX is good value based on its PE Ratio (12.5x) compared to the Banks industry average (12.6x).

PE vs Market: IBTX is good value based on its PE Ratio (12.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: IBTX is good value based on its PEG Ratio (0.2x)


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 6 analysts?

52.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBTX's forecast earnings growth (52.8% per year) is above the savings rate (1.7%).

Earnings vs Market: IBTX's earnings (52.8% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IBTX's revenue (48.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: IBTX's revenue (48.8% per year) is forecast to grow faster 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 (11.2%).


Next Steps

Past Performance

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

37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBTX has high quality earnings.

Growing Profit Margin: IBTX's current net profit margins (33.9%) are lower than last year (35.8%).


Past Earnings Growth Analysis

Earnings Trend: IBTX's earnings have grown significantly by 37.2% per year over the past 5 years.

Accelerating Growth: IBTX's earnings growth over the past year (50.3%) exceeds its 5-year average (37.2% per year).

Earnings vs Industry: IBTX earnings growth over the past year (50.3%) exceeded the Banks industry 12.3%.


Return on Equity

High ROE: IBTX's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


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 covered by short term assets (assets are 1.1x 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 (0.23%)


Next Steps

Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: IBTX's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: IBTX's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 (22.4%), 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 (17.2% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

David Brooks (60yo)

18.1yrs

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 ($USD2.07M) is below average for companies of similar size in the US market ($USD3.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Brooks
Chairman18.1yrsUS$2.07m2.17% $51.7m
Daniel Brooks
Vice Chairman & Chief Risk Officer11.1yrsUS$916.58k0.28% $6.8m
Michelle Hickox
Executive VP & CFO7.8yrsUS$683.73k0.069% $1.7m
James White
Executive VP & COO3.8yrsUS$643.63k0.042% $1.0m
Leslie Beseda
Executive VP & Chief Accounting Officer0yrsno datano data
Mark Haynie
Executive VP & General Counsel1.9yrsno data0.058% $1.4m
Peggy Smolen
Senior Vice President of Marketing & Communications0yrsno datano data
Paul Langdale
Senior VP & Director of Corporate Development0yrsno datano data
James Tippit
Executive VP & Head of Corporate Responsibility2.1yrsno data0.021% $498.9k
Kenneth Whitelam
Senior Vice President of Commercial Lending1.8yrsno datano data

3.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: IBTX's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Brooks
Chairman18.1yrsUS$2.07m2.17% $51.7m
Daniel Brooks
Vice Chairman & Chief Risk Officer11.1yrsUS$916.58k0.28% $6.8m
Craig Holmes
Independent Director7yrsUS$113.48k0.040% $952.7k
Thomas Nichols
Independent Director2.8yrsUS$98.48k0.49% $11.6m
John Jennings
Independent Director5.8yrsUS$98.48k0.10% $2.5m
William Fair
Independent Director11.1yrsUS$108.48k0.51% $12.2m
G. Smith
Lead Independent Director0yrsUS$103.48k0.21% $5.1m
Michael Viola
Independent Director7yrsUS$98.48k0.060% $1.4m
Donald Poarch
Independent Director5.8yrsUS$98.48k0.33% $7.9m
Alicia Harrison
Independent Director0.8yrsno data0.0033% $78.5k

7.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: IBTX's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: IBTX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 46.1%.


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$2.386b
  • 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 United States. It offers various deposit products, including demand deposits, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction, land, and land development loans; residential real estate loans; single-family interim construction loans; commercial loans comprising SBA guaranteed loans, business term loans, equipment financing, and lines of credit and energy related loans; agricultural loans for farmers and ranchers; consumer installment loans comprising loans to purchase cars, boats, and other recreational vehicles; and residential mortgages. In addition, it offers debit cards, online and mobile banking, eStatement, bank-by-mail, and direct deposit services; and business accounts and management services, including analyzed business checking, business savings, and treasury management services. As of December 31, 2018, the company operated 73 branches. Independent Bank Group, Inc. was founded in 2002 and is headquartered in McKinney, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:38
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
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.