Independent Bank (NasdaqGS:INDB) - Share price, News & Analysis

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

INDB ($86.74) is trading below our estimate of [[fair value]] ($130.78)

INDB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

INDB Stock Overview

Rewards

Trading at 33.7% below our estimate of its fair value

Earnings are forecast to grow 26.32% per year

Earnings have grown 9.7% per year over the past 5 years

Pays a reliable dividend of 2.35%

Risk Analysis

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Independent Bank Competitors

Umpqua Holdings

NasdaqGS:UMPQ

US$4.1b

Community Bank System

NYSE:CBU

US$3.8b

First Interstate BancSystem

NasdaqGS:FIBK

US$4.4b

F.N.B

NYSE:FNB

US$4.5b

Price History & Performance

Summary of all time highs, changes and price drops for Independent Bank
Historical stock prices
Current Share Price	US$86.74
52 Week High	US$93.52
52 Week Low	US$68.93
Beta	0.83
1 Month Change	10.26%
3 Month Change	12.93%
1 Year Change	13.94%
3 Year Change	25.71%
5 Year Change	29.85%
Change since IPO	920.47%

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

	INDB	US Banks	US Market
7D	2.8%	5.5%	1.3%
1Y	13.9%	-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 Movement	3.0%
Banks Industry Average Movement	3.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

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

Founded	Employees	CEO	Website
1907	1,691	Chris Oddleifson	https://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 Cap	US$3.98b
Earnings (TTM)	US$156.58m
Revenue (TTM)	US$580.88m

25.4x

P/E Ratio

1.4x

P/B Ratio

Is INDB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
INDB income statement (TTM)
Revenue	US$580.88m
Cost of Revenue	US$0
Gross Profit	US$580.88m
Other Expenses	US$424.30m
Earnings	US$156.58m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.41
Gross Margin	100.00%
Net Profit Margin	26.96%
Debt/Equity Ratio	7.9%

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.

The above table shows the n/a ratio for INDB. This is calculated by dividing INDB's market cap by their current preferred multiple.
What is INDB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.98b

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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1x

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.
Company	PE	Estimated Growth	Market Cap
Peer Average	19.9x
UMPQ Umpqua Holdings	11.3x	36.6%	US$4.1b
CBU Community Bank System	21.9x	11.2%	US$3.8b
FIBK First Interstate BancSystem	34.3x	50.8%	US$4.4b
FNB F.N.B	12.3x	22.2%	US$4.5b
INDB Independent Bank	25.4x	26.3%	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 Ratio	25.4x
Fair PE Ratio	18.5x

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.

Discover strong past performing companies

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.

Discover strong dividend paying companies

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%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31