NasdaqGS:INDB

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

9.8%

INDB

2.7%

US Banks

0.5%

US Market


1 Year Return

-2.3%

INDB

2.9%

US Banks

6.8%

US Market

Return vs Industry: INDB underperformed the US Banks industry which returned 2.9% over the past year.

Return vs Market: INDB underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

INDBIndustryMarket
7 Day9.8%2.7%0.5%
30 Day8.3%1.1%-0.8%
90 Day7.4%2.7%-0.9%
1 Year0.009%-2.3%5.8%2.9%9.2%6.8%
3 Year58.7%49.3%52.0%41.5%45.6%36.2%
5 Year133.9%110.1%69.2%50.7%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INDB ($80.05) is trading above our estimate of fair value ($77.93)

Significantly Below Fair Value: INDB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INDB is poor value based on its PE Ratio (16.9x) compared to the Banks industry average (12.5x).

PE vs Market: INDB is good value based on its PE Ratio (16.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: INDB is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: INDB is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Independent Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDB's forecast earnings growth (5.3% per year) is above the savings rate (2.7%).

Earnings vs Market: INDB's earnings (5.3% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: INDB's revenue (2.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: INDB's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INDB's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Independent Bank performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: INDB's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: INDB's earnings growth over the past year (29.8%) exceeds its 5-year average (19.2% per year).

Earnings vs Industry: INDB earnings growth over the past year (29.8%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: INDB's Return on Equity (8.8%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Independent Bank'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: INDB has a low level of unsold assets or inventory.

Debt Coverage by Assets: INDB's debt is covered by short term assets (assets are 1.156400x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: INDB has an appropriate level of bad loans (0.51%)


Next Steps

Dividend

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

2.20%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: INDB's dividend (2.2%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: INDB's dividend (2.2%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

Dividend Coverage: With its reasonably low payout ratio (35.9%), INDB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INDB's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Chris Oddleifson (60yo)

16.7yrs

Tenure

US$2,347,885

Compensation

Mr. Christopher Oddleifson, also known as Chris, is the Chief Executive Officer of Rockland Trust Company since 2003 and the President and Chief Executive Officer of its parent, Independent Bank Corp. Mr.  ...


CEO Compensation Analysis

Compensation vs. Market: Chris's total compensation ($USD2.35M) is below average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: INDB's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

62yo

Average Age

Experienced Board: INDB's board of directors are seasoned and experienced ( 10.5 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

SellUS$129,50830 May 19
Daniel O'Brien
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,780
Max PriceUS$72.94
SellUS$317,83209 May 19
Kevin Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$80.55
SellUS$97,53301 May 19
Gerard Nadeau
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,215
Max PriceUS$80.27
SellUS$64,00030 Apr 19
Donna Abelli
EntityIndividual
Role
Chairman of the Board
Chairperson of the Board
Shares800
Max PriceUS$80.00
SellUS$259,66714 Mar 19
Robert Cozzone
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares3,205.51
Max PriceUS$81.01
SellUS$204,23612 Mar 19
Gerard Nadeau
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$81.69
SellUS$160,74005 Feb 19
Kevin Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$80.37
SellUS$83,16930 Jan 19
Christopher Oddleifson
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,050
Max PriceUS$79.21
SellUS$116,97829 Jan 19
Christopher Oddleifson
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,500
Max PriceUS$77.99
SellUS$7,92014 Nov 18
Mark Ruggiero
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares100
Max PriceUS$79.20

Ownership Breakdown


Management Team

  • Ed Seksay (61yo)

    General Counsel & Corporate Secretary

    • Tenure: 19.3yrs
    • Compensation: US$699.26k
  • Chris Oddleifson (60yo)

    CEO, President & Director

    • Tenure: 16.7yrs
    • Compensation: US$2.35m
  • David Smith

    Senior VP

    • Tenure: 14.8yrs
  • Gerry Nadeau (61yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$1.07m
  • Rob Cozzone (48yo)

    Executive VP & COO

    • Tenure: 0.5yrs
    • Compensation: US$1.02m
  • Barry Jensen (54yo)

    Chief Technology Officer

    • Tenure: 6.1yrs
    • Compensation: US$655.88k
  • Mark Ruggiero (42yo)

    Senior VP

    • Tenure: 0.5yrs
  • Kathryn Robson

    Chief Internal Auditor & Senior VP

    • Tenure: 0yrs
  • Debra Smith

    Senior VP & Director of Banking & Digital Operations - Rockland Trust Company

    • Tenure: 2.3yrs
  • Meagan Silva

    Executive Assistant

    • Tenure: 0yrs

Board Members

  • Kevin Jones (68yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$153.62k
  • Brian Tedeschi (69yo)

    Independent Director

    • Tenure: 39.8yrs
    • Compensation: US$101.87k
  • Eileen Miskell (61yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$123.92k
  • Chris Oddleifson (60yo)

    CEO, President & Director

    • Tenure: 16.7yrs
    • Compensation: US$2.35m
  • John Morrissey (52yo)

    Independent Director

    • Tenure: 6.9yrs
  • Thomas Venables (64yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$109.87k
  • Daniel O'Brien (63yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$118.17k
  • Donna Abelli (61yo)

    Chairperson of the Board

    • Tenure: 7.6yrs
    • Compensation: US$158.62k
  • Gerry Nadeau (61yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$1.07m
  • Fred Taw (69yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$100.00k

Company Information

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


Key Information

  • Name: Independent Bank Corp.
  • Ticker: INDB
  • Exchange: NasdaqGS
  • Founded: 1907
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.751b
  • Shares outstanding: 34.37m
  • Website: https://www.rocklandtrust.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INDBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1986

Biography

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 i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:36
End of Day Share Price2019/10/18 00:00
Earnings2019/09/30
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.