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 Analysis

Flawless balance sheet with solid track record and pays a dividend.


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


Market Performance


7 Day Return

-8.3%

INDB

-9.0%

US Banks

-7.6%

US Market


1 Year Return

-16.9%

INDB

1.2%

US Banks

10.2%

US Market

Return vs Industry: INDB underperformed the US Banks industry which returned 2.3% over the past year.

Return vs Market: INDB underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

INDBIndustryMarket
7 Day-8.3%-9.0%-7.6%
30 Day-5.5%-6.9%-4.5%
90 Day-16.9%-8.9%-0.6%
1 Year-15.0%-16.9%4.1%1.2%12.5%10.2%
3 Year11.8%5.1%11.7%3.8%37.1%28.3%
5 Year91.9%72.5%58.4%40.5%60.8%43.2%

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?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INDB ($71.32) is trading below our estimate of fair value ($112.1)

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


Price To Earnings Ratio

PE vs Industry: INDB is poor value based on its PE Ratio (14.2x) compared to the Banks industry average (12.2x).

PE vs Market: INDB is good value based on its PE Ratio (14.2x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: INDB is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: INDB is overvalued based on its PB Ratio (1.4x) 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?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDB's forecast earnings growth (6.3% per year) is above the savings rate (1.7%).

Earnings vs Market: INDB's earnings (6.3% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: INDB's revenue (3.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: INDB's revenue (3.8% 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 (10%).


Next Steps

Past Performance

How has Independent Bank performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDB has high quality earnings.

Growing Profit Margin: INDB's current net profit margins (32.9%) are higher than last year (31.9%).


Past Earnings Growth Analysis

Earnings Trend: INDB's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: INDB's earnings growth over the past year (35.8%) exceeds its 5-year average (20.4% per year).

Earnings vs Industry: INDB earnings growth over the past year (35.8%) exceeded the Banks industry 12%.


Return on Equity

High ROE: INDB's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


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 not covered by short term assets (assets are 0.8x 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 (0.54%)


Next Steps

Dividend

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

2.50%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.5%markettop25%4.0%industryaverage3.1%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: INDB's dividend (2.47%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: INDB's dividend (2.47%) is low compared to the top 25% of dividend payers in the US market (3.9%).


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 (35%), 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 (32.2% payout ratio).


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Chris Oddleifson (60yo)

17yrs

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 ($USD2.35M) is below average for companies of similar size in the US market ($USD4.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Oddleifson
CEO, President & Director17yrsUS$2.35m0.26% $6.3m
Robert Cozzone
Executive VP & COO0.8yrsUS$1.02m0.067% $1.6m
Barry Jensen
Chief Technology Officer6.4yrsUS$655.88k0.046% $1.1m
Edward Seksay
General Counsel & Corporate Secretary19.6yrsUS$699.26k0.035% $856.9k
Mark Ruggiero
Chief Accounting Officer & CFO0.8yrsno data0.0087% $209.8k
Meagan Silva
Executive Assistant0yrsno datano data
Kathryn Robson
Chief Internal Auditor & Senior VP0yrsno datano data
Debra Smith
Senior VP & Director of Banking & Digital Operations - Rockland Trust Company2.7yrsno datano data
David Smith
Senior VP15.1yrsno datano data
Jennifer Marino
Senior Vice President & Chief Marketing & Customer Officer of Rockland Trust Company0yrsno datano data

6.4yrs

Average Tenure

54yo

Average Age

Experienced Management: INDB's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Oddleifson
CEO, President & Director17yrsUS$2.35m0.26% $6.3m
Kevin Jones
Independent Director20.1yrsUS$153.62k0.27% $6.6m
Eileen Miskell
Independent Director14.8yrsUS$123.92k0.046% $1.1m
John Morrissey
Independent Director7.3yrsno data0.022% $521.2k
Thomas Venables
Independent Director10.8yrsUS$109.87k0.047% $1.1m
Daniel O'Brien
Independent Director10.8yrsUS$118.17k0.070% $1.7m
Donna Abelli
Chairperson of the Board7.9yrsUS$158.62k0.030% $731.3k
Gerard Nadeau
Director2.9yrsUS$1.07m0.071% $1.7m
Frederick Taw
Independent Director4.6yrsUS$100.00k0.028% $675.9k
Mary Lentz
Independent Director3.3yrsUS$104.43k0.0066% $158.5k

9.4yrs

Average Tenure

62yo

Average Age

Experienced Board: INDB's board of directors are considered experienced (9.4 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 18.9%.


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$2.420b
  • Shares outstanding: 34.38m
  • 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 in Massachusetts. Its products and services include demand deposits and time certificates of deposit, as well as checking, money market, and savings accounts. The company’s loan portfolio includes commercial loans, such as commercial and industrial, asset-based, commercial real estate, commercial construction, and small business loans; consumer real estate loans, including residential mortgages, home equity loans, and loans for the construction of residential properties; and other consumer loans, such as personal loans. Its commercial and industrial loans cover loans for working capital, other business-related purposes, and floor plan financing; asset-based loans consist primarily of revolving lines of credit and term loans; commercial real estate loans include commercial mortgages for construction purposes that are secured by nonresidential properties, multifamily properties, or one-to-four family rental properties; and small business loans comprise businesses with commercial credit needs. The company also provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as automated teller machine cards and debit cards; and mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities, and life insurance. It operates through 87 full service and 2 limited service retail branches, 13 commercial banking centers, 8 investment management offices, and 1 mortgage lending center in Eastern Massachusetts; and an investment management group/commercial lending office in Rhode Island. The company was founded in 1907 and is headquartered in Rockland, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:40
End of Day Share Price2020/02/26 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.