NasdaqGS:INDB

Stock Analysis Report

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


Market Performance


7 Day Return

-2.8%

INDB

-5.4%

US Banks

-4.1%

US Market


1 Year Return

-32.1%

INDB

-30.9%

US Banks

12.0%

US Market

Return vs Industry: INDB underperformed the US Banks industry which returned -30.9% over the past year.

Return vs Market: INDB underperformed the US Market which returned 12% over the past year.


Shareholder returns

INDBIndustryMarket
7 Day-2.8%-5.4%-4.1%
30 Day7.9%3.4%-0.2%
90 Day-12.4%-0.4%2.8%
1 Year-30.1%-32.1%-28.3%-30.9%14.6%12.0%
3 Year-15.3%-21.1%-20.9%-27.5%35.8%26.8%
5 Year24.8%11.5%10.3%-3.4%75.2%55.6%

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?

46.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INDB ($56.51) is trading below our estimate of fair value ($105.59)

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 US Banks industry average (9.9x).

PE vs Market: INDB is good value based on its PE Ratio (14.2x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: INDB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: INDB is overvalued based on its PB Ratio (1.1x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDB's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: INDB's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: INDB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: INDB's revenue (2.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: INDB's revenue (2.5% 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 (6.8%).


Next Steps

Past Performance

How has Independent Bank performed over the past 5 years?

19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDB has high quality earnings.

Growing Profit Margin: INDB's current net profit margins (31%) are lower than last year (31.2%).


Past Earnings Growth Analysis

Earnings Trend: INDB's earnings have grown by 19.1% 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 (-9.3%) over the past year, making it difficult to compare to the Banks industry average (-3.6%).


Return on Equity

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


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


Financial Institutions Analysis

Asset Level: INDB's Assets to Equity ratio (7.8x) is low.

Allowance for Bad Loans: INDB has a sufficient allowance for bad loans (118%).

Low Risk Liabilities: 94% 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 (71%).

Low Risk Deposits: INDB's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: INDB has an appropriate level of bad loans (1%).


Next Steps

Dividend

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

3.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INDB's dividend (3.26%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: INDB's dividend (3.26%) is low compared to the top 25% of dividend payers in the US market (4.78%).


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 (45.7%), 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 (49.5% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

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

5.3yrs

Average management tenure


CEO

Chris Oddleifson (61 yo)

17.58yrs

Tenure

US$3,719,674

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 ($USD3.72M) is about average for companies of similar size in the US market ($USD4.53M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Oddleifson
CEO, President & Director17.58yrsUS$3.72m0.29%
$ 5.5m
Mark Ruggiero
Chief Financial & Accounting Officer1.5yrsUS$452.42k0.011%
$ 208.6k
Robert Cozzone
COO and Executive VP of Consumer & Business Banking1.5yrsUS$1.21m0.070%
$ 1.3m
Edward Seksay
Executive VP20.25yrsUS$1.14m0.043%
$ 794.1k
Barry Jensen
Executive VP and Chief Technology & Operations Officer7.08yrsUS$655.88k0.053%
$ 994.9k
Meagan Silva
Executive Assistantno datano datano data
Kathryn Robson
Chief Internal Auditor & Senior VPno datano datano data
Debra Smith
Senior VP & Director of Banking & Digital Operations - Rockland Trust Company3.33yrsno datano data
David Smith
MD & Chief Investment Officer of Investment Management Group - Rockland Trust Company15.75yrsno datano data
Jennifer Marino
Senior Vice President & Chief Marketing & Customer Officer of Rockland Trust Companyno datano datano data
Maria Harris
Director of Human Resources of Rockland Trust3.42yrsno data0.016%
$ 299.2k
Jonathan Nelson
Treasurerno datano datano data

5.3yrs

Average Tenure

52yo

Average Age

Experienced Management: INDB's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Oddleifson
CEO, President & Director17.58yrsUS$3.72m0.29%
$ 5.5m
Kevin Jones
Independent Director20.75yrsUS$131.87k0.27%
$ 5.1m
Eileen Miskell
Independent Director15.5yrsUS$132.92k0.051%
$ 955.3k
John Morrissey
Independent Director7.92yrsUS$117.12k0.025%
$ 474.5k
Thomas Venables
Independent Director11.5yrsUS$105.12k0.053%
$ 982.8k
Daniel O'Brien
Independent Director11.5yrsUS$123.17k0.070%
$ 1.3m
Donna Abelli
Independent Chairperson of the Board8.58yrsUS$155.37k0.032%
$ 600.4k
Gerard Nadeau
Director3.58yrsUS$1.68m0.084%
$ 1.6m
Michael Hogan
Independent Director3.5yrsUS$102.39k0.0073%
$ 135.1k
Frederick Taw
Independent Director5.25yrsUS$94.98k0.032%
$ 591.3k
David Powers
Director1.5yrsUS$79.42k0.039%
$ 723.3k
Mary Lentz
Independent Director3.92yrsUS$109.92k0.0094%
$ 175.9k

8.3yrs

Average Tenure

63yo

Average Age

Experienced Board: INDB's board of directors are considered experienced (8.3 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$1.863b
  • Shares outstanding: 32.96m
  • 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 Analysis2020/10/30 04:15
End of Day Share Price2020/10/29 00:00
Earnings2020/09/30
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.