NasdaqGM:ISTR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$226.5m

Last Updated

2021/07/25 22:31 UTC

Data Sources

Company Financials +

Executive Summary

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals and small to medium-sized businesses in South Louisiana. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Investar Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ISTR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ISTR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

ISTR

-0.5%

US Banks

2.0%

US Market


1 Year Return

59.3%

ISTR

55.0%

US Banks

39.1%

US Market

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

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


Shareholder returns

ISTRIndustryMarket
7 Day-3.6%-0.5%2.0%
30 Day-2.7%-4.3%1.6%
90 Day0.7%-3.2%3.5%
1 Year61.9%59.3%59.3%55.0%41.3%39.1%
3 Year-13.4%-16.7%16.9%6.9%64.0%53.8%
5 Year51.0%44.1%93.5%69.2%123.9%99.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Investar Holding undervalued compared to its fair value and its price relative to the market?

43.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ISTR ($21.75) is trading below our estimate of fair value ($38.34)

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


Price To Earnings Ratio

PE vs Industry: ISTR is poor value based on its PE Ratio (11.5x) compared to the US Banks industry average (11x).

PE vs Market: ISTR is good value based on its PE Ratio (11.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ISTR is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ISTR is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.1x).


Future Growth

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

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISTR's forecast earnings growth (4.4% per year) is above the savings rate (2%).

Earnings vs Market: ISTR's earnings (4.4% per year) are forecast to grow slower than the US market (15.1% per year).

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

Revenue vs Market: ISTR's revenue (6.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ISTR's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISTR's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Investar Holding performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISTR has high quality earnings.

Growing Profit Margin: ISTR's current net profit margins (23%) are higher than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: ISTR's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: ISTR's earnings growth over the past year (56.5%) exceeds its 5-year average (18.8% per year).

Earnings vs Industry: ISTR earnings growth over the past year (56.5%) exceeded the Banks industry 28.9%.


Return on Equity

High ROE: ISTR's Return on Equity (8%) is considered low.


Financial Health

How is Investar Holding'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: ISTR's Assets to Equity ratio (10.7x) is moderate.

Allowance for Bad Loans: ISTR has a sufficient allowance for bad loans (137%).

Low Risk Liabilities: 93% of ISTR's liabilities are made up of primarily low risk sources of funding.

Loan Level: ISTR has an appropriate level of Loans to Assets ratio (72%).

Low Risk Deposits: ISTR's Loans to Deposits ratio (85%) is appropriate.

Level of Bad Loans: ISTR has an appropriate level of bad loans (0.8%).


Dividend

What is Investar Holding current dividend yield, its reliability and sustainability?

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ISTR's dividend (1.47%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ISTR's dividend (1.47%) is low compared to 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, ISTR has been paying a dividend for less than 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.9%), ISTR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ISTR's dividends in 3 years are forecast to be thoroughly covered by earnings (13.4% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

John D'Angelo (61 yo)

7.67yrs

Tenure

US$1,100,265

Compensation

Mr. John Joseph D'Angelo has been the President and Chief Executive Officer of the Company since Investar Holding Corporation (formerly known as Investar Bank), National Association organization as a bank ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.10M) is about average for companies of similar size in the US market ($USD1.12M).

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


Leadership Team

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


Board Members

Experienced Board: ISTR's board of directors are considered experienced (8.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ISTR 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

Investar Holding Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Investar Holding Corporation
  • Ticker: ISTR
  • Exchange: NasdaqGM
  • Founded: 2006
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$226.490m
  • Shares outstanding: 10.41m
  • Website: https://www.investarbank.com

Number of Employees


Location

  • Investar Holding Corporation
  • 10500 Coursey Boulevard
  • Baton Rouge
  • Louisiana
  • 70816
  • United States

Listings


Biography

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals and small to medium-sized businesses in South Louisia...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 22:31
End of Day Share Price2021/07/23 00:00
Earnings2021/06/30
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.