NasdaqGM:ISTR

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 21% below its fair value

Earnings are forecast to grow 15.4% per year

Earnings grew by 35.5% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and undervalued.


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


Market Performance


7 Day Return

2.4%

ISTR

0.9%

US Banks

0.03%

US Market


1 Year Return

1.2%

ISTR

19.0%

US Banks

18.6%

US Market

Return vs Industry: ISTR underperformed the US Banks industry which returned 19% over the past year.

Return vs Market: ISTR underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

ISTRIndustryMarket
7 Day2.4%0.9%0.03%
30 Day1.2%1.1%1.7%
90 Day10.8%15.5%5.7%
1 Year2.2%1.2%22.5%19.0%21.1%18.6%
3 Year39.5%37.0%30.1%21.0%45.6%36.2%
5 Year86.5%82.3%77.5%57.8%71.1%52.3%

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?

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ISTR ($25.61) is trading below our estimate of fair value ($32.41)

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 (15x) compared to the Banks industry average (12.7x).

PE vs Market: ISTR is good value based on its PE Ratio (15x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ISTR is good value based on its PEG Ratio (1x)


Price to Book Ratio

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


Next Steps

Future Growth

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

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISTR's forecast earnings growth (15.4% per year) is above the savings rate (1.7%).

Earnings vs Market: ISTR's earnings (15.4% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: ISTR's revenue (10.5% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: ISTR's revenue (10.5% 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 (9.9%).


Next Steps

Past Performance

How has Investar Holding performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISTR has high quality earnings.

Growing Profit Margin: ISTR's current net profit margins (25.1%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: ISTR's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: ISTR's earnings growth over the past year (35.5%) exceeds its 5-year average (22.4% per year).

Earnings vs Industry: ISTR earnings growth over the past year (35.5%) exceeded the Banks industry 27.1%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

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

Inventory Level: ISTR has a low level of unsold assets or inventory.

Debt Coverage by Assets: ISTR's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: ISTR has an appropriate level of bad loans (0.36%)


Next Steps

Dividend

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

0.94%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: ISTR's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ISTR's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), 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 (11.5% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

John D'Angelo (59yo)

6.1yrs

Tenure

US$857,344

Compensation

Mr. John J. D’Angelo serves as President, Chief Executive Officer and Director at Investar Holding Corporation Investar Bank, National Association (the “Bank”). Prior to the bank’s organization, he served  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD857.34K) is about average for companies of similar size in the US market ($USD1.13M).

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


Management Age and Tenure

4.2yrs

Average Tenure

48yo

Average Age

Experienced Management: ISTR's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: ISTR's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$66111 Sep 19
David Lukinovich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares29
Max PriceUS$22.80
BuyUS$39711 Sep 19
David Lukinovich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares17
Max PriceUS$23.38
BuyUS$1,16910 May 19
Ryan Finnan
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares49
Max PriceUS$23.85
BuyUS$23,29001 May 19
Andrew Nelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$23.29
BuyUS$1,04321 Mar 19
David Lukinovich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares45
Max PriceUS$23.18
BuyUS$117,50018 Mar 19
Robert Jordan
EntityIndividual
Shares5,000
Max PriceUS$23.50
BuyUS$2,36505 Mar 19
John D'Angelo
EntityIndividual
Role
Chief Executive Officer
President
Shares100
Max PriceUS$23.65
BuyUS$6,71014 Feb 19
Gordon Joffrion
EntityIndividual
Role
Member of the Board of Directors
Director
Shares283
Max PriceUS$23.71
BuyUS$48,06004 Feb 19
Andrew Nelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$24.03

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Management Team

  • John D'Angelo (59yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$857.34k
  • Travis Lavergne (35yo)

    Chief Credit Officer & Executive VP

    • Tenure: 7.4yrs
  • Dane Babin (43yo)

    Executive VP & COO

    • Tenure: 4.2yrs
    • Compensation: US$245.67k
  • Rachel Cherco (59yo)

    Executive VP

    • Tenure: 4.2yrs
    • Compensation: US$183.15k
  • Ryan Finnan (44yo)

    Executive Vice President

    • Tenure: 10.9yrs
    • Compensation: US$201.80k
  • Chris Hufft (46yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$401.89k
  • Randy Kassmeier (66yo)

    Executive VP

    • Tenure: 0yrs
  • Jeff Blum (50yo)

    Executive VP and President of Commercial & Industrial Banking

    • Tenure: 1.9yrs

Board Members

  • Bill Hidalgo (79yo)

    Chairman of the Board

    • Tenure: 6.9yrs
    • Compensation: US$19.99k
  • John D'Angelo (59yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$857.34k
  • James Baker (64yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$12.50k
  • Tom Besselman (69yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$12.50k
  • James Boyce (51yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$12.50k
  • Robert Boyce (66yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$19.99k
  • Don Joffrion (65yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$12.50k
  • David Lukinovich (59yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$19.99k
  • Suzanne Middleton (59yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$19.99k
  • Andrew Nelson (53yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$19.99k

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$238.609m
  • Shares outstanding: 9.77m
  • Website: https://www.investarbank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISTRNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2014

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 00:42
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.