NasdaqGS:ISBC

Stock Analysis Report

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Market Cap

US$3.1b

Last Updated

2021/07/27 02:16 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

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


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

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

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


Market Performance


7 Day Return

3.0%

ISBC

3.7%

US Banks

3.3%

US Market


1 Year Return

58.2%

ISBC

59.0%

US Banks

37.8%

US Market

Return vs Industry: ISBC exceeded the US Banks industry which returned 55% over the past year.

Return vs Market: ISBC exceeded the US Market which returned 39.1% over the past year.


Shareholder returns

ISBCIndustryMarket
7 Day3.0%3.7%3.3%
30 Day-11.3%-4.8%1.1%
90 Day-14.4%-3.8%2.9%
1 Year66.3%58.2%63.5%59.0%39.9%37.8%
3 Year18.2%4.0%17.7%7.6%65.8%55.4%
5 Year39.0%16.4%96.5%71.8%124.3%99.4%

Long-Term 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 compared to its fair value and its price relative to the market?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ISBC ($13.12) is trading below our estimate of fair value ($19.24)

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


Price To Earnings Ratio

PE vs Industry: ISBC is poor value based on its PE Ratio (12.2x) compared to the US Banks industry average (11x).

PE vs Market: ISBC is good value based on its PE Ratio (12.2x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ISBC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ISBC's PB Ratio (1.1x) is in line with the US Banks industry average.


Future Growth

How is Investors Bancorp forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISBC's forecast earnings growth (9.3% per year) is above the savings rate (2%).

Earnings vs Market: ISBC's earnings (9.3% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: ISBC's revenue (6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ISBC's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISBC's Return on Equity is forecast to be low in 3 years time (11.2%).


Past Performance

How has Investors Bancorp performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISBC has high quality earnings.

Growing Profit Margin: ISBC's current net profit margins (32.1%) are higher than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: ISBC's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: ISBC's earnings growth over the past year (36.1%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: ISBC earnings growth over the past year (36.1%) exceeded the Banks industry 28.4%.


Return on Equity

High ROE: ISBC's Return on Equity (9.2%) is considered low.


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


Financial Institutions Analysis

Asset Level: ISBC's Assets to Equity ratio (9.3x) is low.

Allowance for Bad Loans: ISBC has a sufficient allowance for bad loans (307%).

Low Risk Liabilities: 82% of ISBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: ISBC has an appropriate level of Loans to Assets ratio (80%).

Low Risk Deposits: ISBC's Loans to Deposits ratio (108%) is appropriate.

Level of Bad Loans: ISBC has an appropriate level of bad loans (0.4%).


Dividend

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

4.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ISBC's dividend (4.27%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ISBC's dividend (4.27%) is in the top 25% of dividend payers in the US market (3.56%)


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.3%), ISBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ISBC's dividends in 3 years are forecast to be well covered by earnings (43.7% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Kevin Cummings (66 yo)

13.5yrs

Tenure

US$6,083,359

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD6.08M) is about average for companies of similar size in the US market ($USD5.32M).

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


Leadership Team

Experienced Management: ISBC's management team is seasoned and experienced (5.8 years average tenure).


Board Members

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


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ISBC insiders have bought more shares than they have sold 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

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$3.106b
  • Shares outstanding: 236.89m
  • Website: https://www.myinvestorsbank.com

Number of Employees


Location

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

Listings


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 Analysis2021/07/27 02:16
End of Day Share Price2021/07/26 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.