49.96 USD
-0.79 (-1.56%)
We assign a fundamental rating of 2 out of 10 to ISBA. ISBA was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. ISBA may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, ISBA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year ISBA has reported negative net income.
- In the past year ISBA has reported a negative cash flow from operations.
- ISBA had negative earnings in each of the past 5 years.
- ISBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -5.74%, ISBA is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of -83.15%, ISBA is doing worse than 68.18% of the companies in the same industry.
- ISBA has a worse Return On Invested Capital (0.97%) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.74% | ||
| ROE | -83.15% | ||
| ROIC | 0.97% |
ROA(3y)-6.39%
ROA(5y)-4.24%
ROE(3y)-639.86%
ROE(5y)-385.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Operating Margin, with a value of 3.25%, ISBA is doing worse than 70.45% of the companies in the same industry.
- ISBA has a better Gross Margin (55.16%) than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of ISBA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.25% | ||
| PM (TTM) | N/A | ||
| GM | 55.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.11%
GM growth 5Y-3.47%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ISBA is destroying value.
- The number of shares outstanding for ISBA has been increased compared to 1 year ago.
- ISBA has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ISBA is higher compared to a year ago.
2.2 Solvency
- ISBA has an Altman-Z score of 0.48. This is a bad value and indicates that ISBA is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.48, ISBA is doing worse than 74.24% of the companies in the same industry.
- ISBA has a Debt/Equity ratio of 7.14. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of ISBA (7.14) is worse than 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.11
WACC9.17%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that ISBA may have some problems paying its short term obligations.
- ISBA has a Current ratio of 0.68. This is in the lower half of the industry: ISBA underperforms 65.91% of its industry peers.
- ISBA has a Quick Ratio of 0.68. This is a bad value and indicates that ISBA is not financially healthy enough and could expect problems in meeting its short term obligations.
- ISBA has a Quick ratio of 0.66. This is in the lower half of the industry: ISBA underperforms 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- ISBA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.09%, which is quite impressive.
- ISBA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.36%.
- The Revenue has been growing by 36.16% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)37.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
Revenue 1Y (TTM)0.36%
Revenue growth 3Y22.83%
Revenue growth 5Y36.16%
Sales Q2Q%5.36%
3.2 Future
- ISBA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.21% yearly.
- ISBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.41% yearly.
EPS Next Y44.93%
EPS Next 2Y33.7%
EPS Next 3Y22.21%
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y5.25%
Revenue Next 3Y6.41%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ISBA reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Also next year ISBA is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ISBA indicates a slightly more expensive valuation: ISBA is more expensive than 60.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.69 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as ISBA's earnings are expected to grow with 22.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3Y22.21%
5. Dividend
5.1 Amount
- ISBA has a yearly dividend return of 0.55%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.21, ISBA has a dividend in line with its industry peers.
- With a Dividend Yield of 0.55, ISBA pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
- ISBA has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of ISBA decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- ISBA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-0.47%
EPS Next 2Y33.7%
EPS Next 3Y22.21%
ISABELLA BANK CORP / ISBA FAQ
What is the fundamental rating for ISBA stock?
ChartMill assigns a fundamental rating of 2 / 10 to ISBA.
What is the valuation status of ISABELLA BANK CORP (ISBA) stock?
ChartMill assigns a valuation rating of 1 / 10 to ISABELLA BANK CORP (ISBA). This can be considered as Overvalued.
How profitable is ISABELLA BANK CORP (ISBA) stock?
ISABELLA BANK CORP (ISBA) has a profitability rating of 1 / 10.
Can you provide the financial health for ISBA stock?
The financial health rating of ISABELLA BANK CORP (ISBA) is 0 / 10.
Can you provide the dividend sustainability for ISBA stock?
The dividend rating of ISABELLA BANK CORP (ISBA) is 1 / 10 and the dividend payout ratio is -0.47%.