NasdaqGS:ISBC

Stock Analysis Report

Executive Summary

Investors Bancorp, Inc. operates as the bank holding company for Investors Bank that provides various banking products and services to individuals and businesses in the United States.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Investors Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

ISBC

1.4%

US Banks

1.0%

US Market


1 Year Return

1.4%

ISBC

0.2%

US Banks

6.7%

US Market

Return vs Industry: ISBC exceeded the US Banks industry which returned 0.2% over the past year.

Return vs Market: ISBC underperformed the US Market which returned 6.7% over the past year.


Share holder returns

ISBCIndustryMarket
7 Day2.2%1.4%1.0%
30 Day0.7%-2.6%-1.8%
90 Day4.2%0.8%-1.8%
1 Year5.3%1.4%3.1%0.2%9.1%6.7%
3 Year8.3%-0.9%52.0%41.5%46.1%36.6%
5 Year32.6%16.6%69.7%51.2%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Investors Bancorp undervalued based on future cash flows and its price relative to the stock market?

17.28x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ISBC ($11.6) is trading above our estimate of fair value ($4.64)

Significantly Undervalued: ISBC is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ISBC is poor value based on its PE Ratio (17.3x) compared to the Banks industry average (12.5x).

PE vs Market: ISBC is good value based on its PE Ratio (17.3x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: ISBC is poor value based on its PEG Ratio (2.9x)


Price Based on Value of Assets

PB vs Industry: ISBC is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Investors Bancorp expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ISBC's forecast earnings growth (6% per year) is above the savings rate (2.7%).

Earnings vs Market: ISBC's earnings (6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: ISBC's revenue (9.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ISBC's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if ISBC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Investors Bancorp performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ISBC's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: ISBC's earnings growth over the past year (16.8%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: ISBC earnings growth over the past year (16.8%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: ISBC's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: ISBC's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Investors Bancorp'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: ISBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: ISBC's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: ISBC has an appropriate level of bad loans (0.56%)


Next Steps

Dividend

What is Investors Bancorp's current dividend yield, its reliability and sustainability?

3.86%

Expected Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years3.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ISBC's dividend (3.79%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ISBC's dividend (3.79%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, ISBC has been paying a dividend for less than 10 years.

Growing Dividend: ISBC's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.5%), ISBC'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 and that it will be covered by earnings.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Kevin Cummings (64yo)

11.8yrs

Tenure

US$3,409,430

Compensation

Mr. Kevin Cummings has been the Chairman of Investors Bancorp and Investors Bank since May 22, 2018. Mr. Cummings has been its Chief Executive Officer of Investors Bancorp and Investors Bank since January  ...


CEO Compensation Analysis

Compensation vs. Market: Kevin's total compensation ($USD3.41M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

4.4yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ISBC's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

67yo

Average Age

Experienced Board: ISBC's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

Insider Buying: ISBC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$220,88405 Aug 19
P. Burke
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares20,000
Max PriceUS$11.06
SellUS$3,304,49009 Mar 19
Blue Harbour Group, L.P.
EntityCompany
Shares268,100
Max PriceUS$12.50
SellUS$382,30722 Feb 19
Doreen Byrnes
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$12.78

Ownership Breakdown


Management Team

  • Richard Spengler (57yo)

    Executive VP & Chief Lending Officer

    • Tenure: 11.8yrs
    • Compensation: US$1.08m
  • Kevin Cummings (64yo)

    Chairman & CEO

    • Tenure: 11.8yrs
    • Compensation: US$3.41m
  • Domenick Cama (63yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$2.03m
  • P. Burke (47yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$959.86k
  • Paul Kalamaras (60yo)

    Executive VP & Chief Risk Officer

    • Tenure: 11.2yrs
    • Compensation: US$986.58k
  • Brian Doran

    Senior VP

    • Tenure: 4yrs
  • Bill Brown (52yo)

    Chief Retail Banking Officer

    • Tenure: 0.8yrs
  • Dan Dougherty

    Senior VP & Treasurer

    • Tenure: 3yrs
  • Marianne Wade

    Senior VP & Director of Financial Reporting

    • Tenure: 0yrs
  • Elaine Rizzo

    Senior VP & Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Dennis Bone (67yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$138.82k
  • James Ward (70yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$150.32k
  • Kevin Cummings (64yo)

    Chairman & CEO

    • Tenure: 11.8yrs
    • Compensation: US$3.41m
  • Domenick Cama (63yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$2.03m
  • Doreen Byrnes (70yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$159.85k
  • Peter Carlin (46yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$126.57k
  • Robert Albanese (70yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$147.69k
  • Michele Siekerka (54yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$140.06k
  • William Cosgrove (71yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$166.22k
  • James Garibaldi (67yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$107.20k

Company Information

Investors Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Investors Bancorp, Inc.
  • Ticker: ISBC
  • Exchange: NasdaqGS
  • Founded: 1926
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.075b
  • Shares outstanding: 265.13m
  • Website: https://www.myinvestorsbank.com

Number of Employees


Location

  • Investors Bancorp, Inc.
  • 101 JFK Parkway
  • Short Hills
  • New Jersey
  • 7078
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISBCNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDOct 2005
0IBDB (Deutsche Boerse AG)YesNew Common StockDEEUROct 2005
ISBC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM USD0.01(NEW)BRBRLMay 2019

Biography

Investors Bancorp, Inc. operates as the bank holding company for Investors Bank that provides various banking products and services to individuals and businesses in the United States. Its deposit products  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:49
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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