NasdaqGS:INDB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$2.6b

Last Updated

2021/06/22 03:32 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

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

Stable Share Price: INDB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: INDB's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

INDB

-4.6%

US Banks

-1.0%

US Market


1 Year Return

14.7%

INDB

54.9%

US Banks

39.0%

US Market

Return vs Industry: INDB underperformed the US Banks industry which returned 50.6% over the past year.

Return vs Market: INDB underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

INDBIndustryMarket
7 Day-1.6%-4.6%-1.0%
30 Day-2.5%-7.4%2.0%
90 Day-8.2%2.5%6.0%
1 Year17.9%14.7%59.5%54.9%41.2%39.0%
3 Year2.8%-4.4%24.7%14.0%61.3%51.3%
5 Year102.8%82.3%117.2%89.7%133.8%107.4%

Long-Term 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?

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INDB ($75.46) is trading below our estimate of fair value ($91.16)

Significantly Below Fair Value: INDB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: INDB is poor value based on its PE Ratio (18.3x) compared to the US Banks industry average (11.6x).

PE vs Market: INDB is good value based on its PE Ratio (18.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: INDB is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: INDB is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.1x).


Future Growth

How is Independent Bank forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDB's forecast earnings growth (36.6% per year) is above the savings rate (2%).

Earnings vs Market: INDB's earnings (36.6% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: INDB's revenue (16.7% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: INDB's revenue (16.7% 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 (8%).


Past Performance

How has Independent Bank performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDB has high quality earnings.

Growing Profit Margin: INDB's current net profit margins (29.9%) are lower than last year (32.1%).


Past Earnings Growth Analysis

Earnings Trend: INDB's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: INDB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INDB had negative earnings growth (-13.1%) over the past year, making it difficult to compare to the Banks industry average (20.7%).


Return on Equity

High ROE: INDB's Return on Equity (7.9%) is considered low.


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


Financial Institutions Analysis

Asset Level: INDB's Assets to Equity ratio (8x) is low.

Allowance for Bad Loans: INDB has a sufficient allowance for bad loans (182%).

Low Risk Liabilities: 96% 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 (66%).

Low Risk Deposits: INDB's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: INDB has an appropriate level of bad loans (0.6%).


Dividend

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

2.47%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 22 2021Ex Dividend DateJun 25 2021Dividend Pay DateJul 09 202114 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: INDB's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: INDB's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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

Dividend Coverage: With its reasonably low payout ratio (45%), 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 (38.9% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Chris Oddleifson (61 yo)

18.33yrs

Tenure

US$3,319,086

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 ($USD3.32M) is below average for companies of similar size in the US market ($USD5.38M).

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 (5.9 years average tenure).


Board Members

Experienced Board: INDB's board of directors are considered experienced (8.9 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 not been meaningfully diluted in the past year.


Top Shareholders

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$2.565b
  • Shares outstanding: 33.03m
  • Website: https://www.rocklandtrust.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/22 03:32
End of Day Share Price2021/06/21 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.