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INDB

Independent Bank NasdaqGS:INDB Stock Report

Last Price

US$86.74

Market Cap

US$4.0b

7D

2.8%

1Y

13.9%

Updated

12 Aug, 2022

Data

Company Financials +
INDB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends4/6

INDB Stock Overview

Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts.

Independent Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Independent Bank
Historical stock prices
Current Share PriceUS$86.74
52 Week HighUS$93.52
52 Week LowUS$68.93
Beta0.83
1 Month Change10.26%
3 Month Change12.93%
1 Year Change13.94%
3 Year Change25.71%
5 Year Change29.85%
Change since IPO920.47%

Recent News & Updates

Jul 21

Independent Bank Non-GAAP EPS of $1.32 beats by $0.06, revenue of $172.76M beats by $3.83M

Independent Bank press release (NASDAQ:INDB): Q2 Non-GAAP EPS of $1.32 beats by $0.06. Revenue of $172.76M (+46.0% Y/Y) beats by $3.83M.

Shareholder Returns

INDBUS BanksUS Market
7D2.8%5.5%1.3%
1Y13.9%-13.2%-11.7%

Return vs Industry: INDB exceeded the US Banks industry which returned -13.2% over the past year.

Return vs Market: INDB exceeded the US Market which returned -11.7% over the past year.

Price Volatility

Is INDB's price volatile compared to industry and market?
INDB volatility
INDB Average Weekly Movement3.0%
Banks Industry Average Movement3.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: INDB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: INDB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19071,691Chris Oddleifsonhttps://www.rocklandtrust.com

Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts. The company accepts interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It also offers commercial and industrial, commercial real estate and construction, small business, consumer real estate, and personal loans.

Independent Bank Fundamentals Summary

How do Independent Bank's earnings and revenue compare to its market cap?
INDB fundamental statistics
Market CapUS$3.98b
Earnings (TTM)US$156.58m
Revenue (TTM)US$580.88m

25.4x

P/E Ratio

1.4x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
INDB income statement (TTM)
RevenueUS$580.88m
Cost of RevenueUS$0
Gross ProfitUS$580.88m
Other ExpensesUS$424.30m
EarningsUS$156.58m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.41
Gross Margin100.00%
Net Profit Margin26.96%
Debt/Equity Ratio7.9%

How did INDB perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

53%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is INDB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for INDB?

Other financial metrics that can be useful for relative valuation.

INDB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does INDB's PE Ratio compare to its peers?

INDB PE Ratio vs Peers
The above table shows the PE ratio for INDB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.9x
UMPQ Umpqua Holdings
11.3x36.6%US$4.1b
CBU Community Bank System
21.9x11.2%US$3.8b
FIBK First Interstate BancSystem
34.3x50.8%US$4.4b
FNB F.N.B
12.3x22.2%US$4.5b
INDB Independent Bank
25.4x26.3%US$4.0b

Price-To-Earnings vs Peers: INDB is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (19.9x).


Price to Earnings Ratio vs Industry

How does INDB's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: INDB is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the US Banks industry average (10x)


Price to Earnings Ratio vs Fair Ratio

What is INDB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

INDB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.4x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: INDB is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).


Share Price vs Fair Value

What is the Fair Price of INDB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: INDB ($86.74) is trading below our estimate of fair value ($130.78)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDB's forecast earnings growth (26.3% per year) is above the savings rate (1.9%).

Earnings vs Market: INDB's earnings (26.3% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: INDB's revenue (17.5% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: INDB's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if INDB's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Independent Bank performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: INDB has high quality earnings.

Growing Profit Margin: INDB's current net profit margins (27%) are lower than last year (31.1%).


Past Earnings Growth Analysis

Earnings Trend: INDB's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: INDB's earnings growth over the past year (5.2%) is below its 5-year average (9.7% per year).

Earnings vs Industry: INDB earnings growth over the past year (5.2%) underperformed the Banks industry 9.2%.


Return on Equity

High ROE: INDB's Return on Equity (5.5%) is considered low.


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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

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

Allowance for Bad Loans: INDB has a sufficient allowance for bad loans (258%).

Low Risk Liabilities: 97% of INDB's liabilities are made up of primarily low risk sources of funding.

Loan Level: INDB has an appropriate level of Loans to Assets ratio (68%).

Low Risk Deposits: INDB's Loans to Deposits ratio (81%) is appropriate.

Level of Bad Loans: INDB has an appropriate level of bad loans (0.4%).


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: INDB's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: INDB's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (4%).


Stability and Growth of Payments

Stable Dividend: INDB's dividends per share have been stable in the past 10 years.

Growing Dividend: INDB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52.9%), INDB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.


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Management

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

7.1yrs

Average management tenure


CEO

Chris Oddleifson (63 yo)

19.58yrs

Tenure

US$2,783,438

Compensation

Mr. Christopher Oddleifson, also known as Chris, is the Chief Executive Officer of Rockland Trust Company and the President and Chief Executive Officer of its parent, Independent Bank Corp. (Nasdaq Global...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.78M) is below average for companies of similar size in the US market ($USD6.64M).

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


Leadership Team

Experienced Management: INDB's management team is seasoned and experienced (7.1 years average tenure).


Board Members

Experienced Board: INDB's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: INDB insiders have only sold shares 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 38.9%.


Top Shareholders

Company Information

Independent Bank Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Independent Bank Corp.
  • Ticker: INDB
  • Exchange: NasdaqGS
  • Founded: 1907
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$3.981b
  • Shares outstanding: 45.90m
  • Website: https://www.rocklandtrust.com

Number of Employees


Location

  • Independent Bank Corp.
  • 288 Union Street
  • Rockland
  • Massachusetts
  • 2370
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.